Panama Rejects Trump’s Canal Takeover Claim

Panama President José Raúl Mulino has firmly rejected US President Donald Trump’s statement about taking back control of the Panama Canal. Trump’s claim, made during his inauguration speech, has sparked a strong response from Panama, emphasizing the canal’s sovereignty and administration under Panamanian control.

Trump’s Inauguration Speech and Claims

In his inauguration speech, US President Donald Trump reiterated his previous claims that the Panama Canal was under Chinese control. He stated, “China is operating the Panama Canal. We didn’t give it to China; we gave it to Panama, and we’re taking it back.” This statement has caused significant controversy, as the Panama Canal is administered by the Panamanian government through the Panama Canal Authority (ACP). The canal, which connects Asia to the East Coast of the Americas, was originally constructed and controlled by the US when it opened in 1914. Trump’s assertion has raised questions about the accuracy of his claims and the potential implications for US-Panama relations.

Panama’s Response and Rejection

Following Trump’s speech, Panama President José Raúl Mulino issued a clear rejection of the US President’s statement. Mulino emphasized that the Panama Canal is and will continue to be under Panamanian control, with respect to permanent neutrality. He stated, “The Canal is and will continue to be Panamanian, and its administration will remain under Panamanian control with respect to permanent neutrality. There is no presence of any nation in the world interfering with our administration. The Canal is not a concession from anyone.” This strong response highlights Panama’s commitment to maintaining sovereignty over the canal and ensuring its administration remains free from external interference.

China’s Involvement and Hutchison Ports

The closest China comes to controlling the canal is through Hong Kong-headquartered Hutchison Ports, which administers the ports of Balboa on the Pacific side and Cristobal on the Atlantic entrance through its subsidiary, Panama Ports Company (PPC). In June 2021, Panama renewed a 25-year concession for PPC. Hutchison Ports is part of the Hong Kong-listed conglomerate CK Hutchison Holdings, which is not directly owned or controlled by the Chinese government. On Monday, Panama launched an investigation into the concession held by PPC. The Comptroller General of the Republic announced on social media platform X that auditors had arrived at the company to “begin a comprehensive audit aimed at ensuring the efficient and transparent use of public resources.” This investigation underscores Panama’s commitment to transparency and accountability in its administration of the canal.

Trump’s Accusations of Overcharging

In his inaugural address, President Trump also accused Panama of overcharging American ships to use the canal. He claimed, “American ships are being severely overcharged and not treated fairly in any way, shape, or form, and that includes the United States Navy.” The construction of the canal began with the French in 1881, was taken over by the US in 1904, and opened in 1914. It remained under US control until 1977 when a treaty was signed by US President Jimmy Carter for the handover of the canal. The waterway was jointly controlled by the US and Panama until 1999 when Panama took over full control. Trump’s accusations have added another layer of complexity to the ongoing debate over the canal’s administration and the fairness of its tolls.