Panama Signs the Beijing Convention on the Judicial Sale of Ships

By
Mfame Editor
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23

  • Panama Becomes the 32nd Signatory to the Convention.
  • Growing International Support for the Treaty.
  • Convention Aims to Ensure Legal Certainty in Ship Sales.

On 4 March 2025, Panama signed the United Nations Convention on the International Effects of Judicial Sales of Ships, otherwise referred to as the Beijing Convention on the Judicial Sale of Ships, at the United Nations Headquarters in New York. This means Panama becomes a signatory alongside 31 other signatories from Africa, Europe, Asia, the Americas, and the European Union, reports the United Nations.

Increased Support for the Convention

The Beijing Convention on the Judicial Sale of Ships has been signed by 32 States, namely Antigua and Barbuda, Belgium, Burkina Faso, China, Comoros, Côte d’Ivoire, Croatia, Cyprus, the Dominican Republic, Ecuador, El Salvador, Gabon, Ghana, Grenada, Honduras, Italy, Kiribati, Liberia, Libya, Luxembourg, Malta, Sao Tome and Principe, Saudi Arabia, Senegal, Sierra Leone, Singapore, Spain, Switzerland, Syria, the United Republic of Tanzania, and the European Union. El Salvador joined the Convention on 23 May 2024 as the first State party to it.

Objective and Aims of the Convention

The Convention was drafted by UNCITRAL and adopted by the United Nations General Assembly on 7 December 2022. The Convention sets out a unified legal system for giving recognition to the international effects of judicial sales of ships while adhering to domestic law in each State regarding procedures of judicial sales.

By ensuring legal certainty regarding clean title transfer, the Convention aims to:

  1. Maximize the sale price of ships in judicial sales.
  2. Ensure fair distribution of proceeds among creditors.
  3. Enhance international trade by reducing legal uncertainties surrounding ship ownership transfers.

Next Steps for Entry into Force and Ratification

The Convention continues to be open for signature, ratification, accession, or approval by regional economic integration organizations and States. It will formally enter into force 180 days following the deposit of the third instrument of acceptance, approval, accession, or ratification.

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Source: United Nations