Panama rejects Trump’s demands for US control of the Panama Canal amid claims of Chinese influence
Panamanian President Jose Raul Mulino firmly rejected any possibility of negotiations with incoming US President Donald Trump regarding the Panama Canal. Speaking at a press conference on December 26, Mulino denied allegations that China had any influence over the strategic waterway, which connects the Atlantic and Pacific Oceans, and emphasized that the canal is entirely under Panamanian control.
Trump had raised concerns over the canal’s management and toll fees for US vessels, calling the charges “ridiculous” and suggesting that China’s growing involvement in the region could jeopardize US interests. He also hinted at the possibility of demanding the canal’s return to US control, a move that would challenge the 1999 agreement under which the canal was transferred to Panama.
Mulino dismissed these claims, stating, “There’s nothing to talk about.” He made it clear that the canal “belongs to Panamanians” and emphasized the long and difficult history of Panama’s ownership, which was solidified under the 1977 Panama Canal Treaty. He added, “There is no possibility of opening any kind of conversation around this reality.”
The canal, which was originally built by the United States and opened in 1914, is vital for global maritime trade, with 5% of global traffic passing through it. While the US remains the largest user of the canal, accounting for 74% of traffic, China is the second largest with 21%.
In response to Trump’s accusations of Chinese military involvement in the canal, Mulino strongly denied any such claims, calling the notion of Chinese soldiers operating the canal “absurd.”
Despite Panama’s established diplomatic relations with China since 2017, Mulino reiterated that there is no Chinese influence in the canal’s operations. This dispute has sparked protests in Panama, with demonstrators expressing their opposition to Trump’s interference in Panama’s sovereignty.
