PANAMA CITY (Reuters) - Panama and China will begin negotiations in June 2018 to sign a free-trade deal, the two countries' trade ministers said on Thursday, consolidating a relationship that has strengthened after the Central American nation ditched ties with Taiwan.

Panama's June decision to end diplomatic links with Taiwan was a major victory for Beijing, as it lures away the dwindling number of countries that have formal relations with the island China claims as its own. Last month, a senior Chinese diplomat said China will provide Panama with whatever help it needs.