PANAMA Law and Practice Contributed by: Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
9.4 International Conflict Panamanian maritime courts have not made public decisions discussing the legal or commercial impli - cations of ongoing international conflicts. From a flag state point of view, the maritime administration constantly issues guidance and warning circulars to Panama-flagged vessels regarding these conflicts. 10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues No jurisdiction-specific shipping and maritime issues apply here.
There are no known sanctions from proceedings imposed by the Panamanian authorities owing to vio - lations of the sulphur limit or related regulations. 9.3 Trade Sanctions The Political Constitution of the Republic of Pana - ma sets forth that the Panamanian State will abide by international law. Moreover, as a member of the United Nations (UN), Panama must comply with all issued UN resolutions, including trade sanctions. In this respect, there are precedents for trade sanctions being implemented and enforced by the Panamanian government, though to date no legal proceedings have been initiated in Panama in this regard. Trade sanctions related to the Russia–Ukraine con - flict have no significant impact on Panama given that the commercial bilateral exchange between Panama and said nations is very reduced (approximately 0.1% of the total international commercial relationships of Panama). Transit via the Panama Canal might suffer a reduction, but to date this has not been of signifi - cance. It is worth pointing out that the Panama Canal does not prohibit transit of vessels on account of their national - ity, due to the declared permanent neutrality of this interoceanic waterway. The Panamanian legal system currently does not provide mechanisms authorising trade activities otherwise outlawed by sanctions. A party may file administrative, judicial and constitu - tional challenges requesting that an order be revoked.
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