Panama had complained its boats suffered tighter controls in China following the cancellation of a Hong Kong company's concession to operate two ports in the Panama Canal.

But Thursday's announcement shared data of a sharp drop in detentions for inspections of Panamanian-flagged vessels, from 140 in May to just 16 so far in July.

"Talks between officials from the governments of Panama and China have yielded their first results, achieving a significant decrease in the detentions for inspections of Panamanian-flagged ships in ports," a government statement said.

Following negotiations in Beijing earlier this month, the two countries "reached a consensus" and will "move forward with the renewal procedures" for the agreement, the Panamanian Foreign Ministry announced earlier this week.

China intensified controls of Panamanian boats following a court ruling in the Central American country that nixed the contract for Panama Ports Company -- a subsidiary of Hong Kong firm CK Hutchison -- which operated two terminals in the canal.

US President Donald Trump has sought to assert control over the key interoceanic waterway under the argument it was run by China, though the canal is overseen by a Panamanian institution autonomous from the government.