Panama

About the Flag

Panama is a constitutional republic bordering both the Caribbean Sea and the Northern Pacific Ocean between Colombia and Costa Rica. It is a member of the OAS, the UN, and the IMO. The President is the Chief of State and Head of Government, and there is a unicameral Legislative Assembly. The legal system is based on civil law. Spanish is the official language but many Panamanians also speak English. The capital is Panama City.

Panama’s economy is service based with emphasis on banking, commerce, and tourism. Trade and financial ties with the United States are close. Bananas, shrimp, clothing, and sugar are major exports, and principal trading partners are the United States and the EU. The monetary unit is the balboa. The Panama Canal was opened in 1914, and jurisdiction was transferred to Panama from the United States in 1979. However, the United States turned over control of canal operations on December 31, 1999.

The General Directorate of Merchant Marine of the Panama Maritime Authority is in charge of all administrative proceedings related to the registration of ships. The New York Representative Office, sometimes referred to as Segumar, directs all casualty investigations, provides technical certificates and ensures compliance with legal navigation, safety, sanitary and marine environment pollution prevention requirements on the part of Panamanian vessels. Annual Safety Inspections are no longer handled through New York, but by the Directorate General of Merchant Marine, in Panama.

Law No. 8 of January 12th, 1925 establishes the procedure for the nationalization and admeasurement of vessels and is the cornerstone of Panama’s maritime legislation. The Panama Register is the world’s largest shipping registry.