Panama President Jose Raul Mulino slams Donald Trump’s claims of Chinese control over Panama Canal

Panamanian President José Raúl Mulino strongly rejected claims made by former U.S. President Donald Trump regarding Chinese interference in the operation of the Panama Canal. On December 26, 2024, Trump posted on Truth Social alleging that China was "illegally" operating the canal and accusing the United States of paying billions of dollars in "repair" costs while having no influence over the waterway. In response, Mulino emphatically denied any Chinese involvement, stating that there was "absolutely no Chinese interference or participation in anything to do with the Panama Canal."

Trump’s allegations

In his post, Trump accused China of “illegally” operating the Panama Canal, claiming that the United States continues to pay billions of dollars in “repair” costs while having no influence over its operations.

Trump also referred to the historical significance of the canal, stating that the US had lost 38,000 workers during its construction over 100 years ago. This reference to the canal’s construction in the early 1900s highlights the immense costs and efforts involved in completing the monumental project.

Trump's concerns over Panama Canal tolls

Earlier, Trump raised concerns over what he described as “ridiculous” tolls for US vessels.

Threats of US control over the Canal

Trump recently even threatened that if Panama did not secure the canal’s operation, the US would demand its return. His comments quickly drew sharp responses from the government of Panama, reigniting tensions surrounding the waterway, which has long been a subject of geopolitical importance.

1977 Panama Canal treaty: A shift in control

The Panama Canal was initially started by French engineers in the late 19th century, but the project was plagued by tropical diseases and difficult terrain, leading to its abandonment. The United States took over the effort in 1904 and completed the canal in 1914. Under US control, the canal remained an essential maritime route for global trade. However, the control of the Panama Canal shifted dramatically under the presidency of Jimmy Carter, with the signing of the 1977 Panama Canal Treaty. This agreement effectively ceded control of the canal to Panama, while ensuring its neutral status and guaranteeing the US unimpeded access.

Panamanian government’s firm denial

Panama’s swift and firm response to Trump’s comments came from President Mulino, who unequivocally rejected the notion of Chinese interference. During a press conference on December 26, Mulino stated: “There is absolutely no Chinese interference or participation in anything to do with the Panama Canal.”

The Panama Canal’s strategic importance

The Panama Canal, which allows ships to travel between the Atlantic and Pacific Oceans, is one of the most important maritime routes in the world. It is critical for global trade, with approximately five percent of world trade passing through it. The United States remains the largest user of the canal, accounting for 74% of its traffic, while China is the second-largest user with 21%. The canal serves as a shortcut, saving time and resources by eliminating the need for ships to navigate around the southern tip of South America.