PANAMA Law and Practice Contributed by: María Teresa Diaz, Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
PMA, through the General Directorate of Mer - chant Marine, is responsible for the enforcement of the sulphur content limit on vessels flying the Panamanian flag, while the General Directorate of Ports is responsible for the enforcement of the sulphur content limit on vessels coming into Panamanian ports. Limits have been implemented by the PMA in accordance with the limit specified under MAR - POL Annex VI, which is 0.50% m/m (mass by mass). Currently, no known port state control enforce - ment actions take place in Panama to enforce the sulphur content limit. There are no known sanctions from proceedings imposed by the Panamanian authorities owing to violations of the sulphur limit or related regula - tions. 8.3 Trade Sanctions The Political Constitution of the Republic of Pan - ama sets forth that the Panamanian State will abide by international law. Moreover, as a mem - ber of the United Nations (UN), Panama must comply with all issued UN resolutions, including trade sanctions. In this respect, there are prec - edents 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 Russian-Ukrainian conflict 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 inter - national commercial relationships of Panama). Transit via the Panama Canal might suffer a
reduction, but to date this has not been of sig - nificance. It is worth pointing out that the Panama Canal does not prohibit transit of vessels on account of their nationality, due to the declared perma - nent 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 constitutional challenges requesting an order to be revoked. 8.4 International Conflict(s) Panamanian maritime courts have not made public decisions discussing the legal or com - mercial implications of ongoing international conflicts. From a flag state point of view, the maritime administration constantly issues guid - ance and warning circulars to Panama-flagged vessels regarding these conflicts. 9. Additional Maritime or Shipping Issues 9.1 Other Jurisdiction-Specific Shipping and Maritime Issues No jurisdiction-specific shipping and maritime issues apply here.
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