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Panama rejects Trump promise to take back Panama CanalPanama rejects Trump promise to take back Panama Canal

Panama President José Raúl Mulino has rejected a statement by US President Donald Trump that America will take back control of the Panama Canal.

Marcus Hand, Editor

January 21, 2025

2 Min Read
New locks in the Panama Canal
Credit: Panama Canal Authority

In his inauguration speech on Capitol Hill US President Trump repeated claims, he made last month that the Panama Canal was under the control of China.

“And above all, China is operating the Panama Canal. And we didn't give it to China, we gave it to Panama, and we're taking it back,” Trump stated.

The Panama Canal is administered by the Panamanian government through the Panama Canal Authority (ACP) and connects Asia to the East Coast of the Americas, having been originally constructed and controlled by the US when it opened in 1914.

In a statement following Trump’s inauguration speech Panama President Mulino issued a clear rejection of the US President’s statement of intent regarding the canal. “I must fully reject the statements made by President Donald Trump regarding Panama and its Canal during his inaugural address.

“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,” President Mulino said.

The closest China comes to control of the canal or areas around it is that Hong Kong-headquartered Hutchison Ports administers the ports of Balboa on the Pacific side and Cristobal on the Panama Canal Atlantic entrance through subsidiary Panama Ports Company (PPC). A 25-year concession for PPC by Panama was renewed in June 2021.

Related:Panama Renews 25-year concession to Hutchison’s Panama Ports

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 posted on social media platform X that auditors arrived on at the company on Monday to “begin a comprehensive audit aimed at ensuring the efficient and transparent use of public resources”.

In his inaugural address President Trump also accused Panama of over charging American ships to use the canal. “American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the United States Navy,” Trump stated.

Construction of the canal was originally started by the French 1881, and taken over by the US 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 controlled jointly by the US and Panama until 1999 when Panama took over full control.

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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