From the moment in which Panama decided to establish bilateral relations and therefore diplomatic relations with China, other relationships were hindered although they are directly affecting trade relations.
Although Panama and Taiwan are not on the same page since June of 2017, the "Free Trade Agreement" still stands.
The information was provided to the media through a communiqué issued by the Ministry of Foreign Affairs of the island.
"Unless the existence of diplomatic relations is indispensable for the application of a treaty, the breakdown of diplomatic relations between the parties does not affect the validity of that treaty," the Taiwanese ministry said.
Such statements are a response to the position assumed by the Varela administration, which pointed out that the Free Trade Agreement had expired although, in the opinion of the representatives of Taiwan, the legal procedure that entails such a decision has not been initiated and that it also requires compliance of a clause and rescission that comes into effect 180 days after they are notified.
If Panama rescinds "the agreement unilaterally and affects the rights and interests" of island commerce, Taiwan will "follow international law and due process to enforce" its "legal rights," the statement added.
Panama and China have signed 19 agreements since last November, date in which the visit of the president of Panama, Juan Carlos Varela, to China was made. The agreements cover different commercial areas, such as Civil and Maritime Air Transport, the exchange of information to improve the merchant marine of both nations, together with issues related to industrial parks, agriculture, aviation and tourism, and others.