The Panama Canal, a vital conduit for global maritime trade, has become the center of a political dispute. Panama's President José Raúl Mulino has publicly refuted claims made by Donald Trump regarding the control of the canal. The canal, which has been under the management of the Panama Canal Authority (ACP) since 1999, is run entirely by Panamanians. President Mulino has accused Trump of "lying" about plans to reclaim the canal, asserting that these claims are unfounded.
The ACP operates as an autonomous entity, with its board of directors appointed by the Panamanian president and national assembly. This governance structure underscores the national ownership and operation of the canal. Despite accusations from Trump, there is no Chinese management involved in the canal's operations. Beijing has consistently denied any interference in its functioning.
"Once again, President Trump is lying. The Panama Canal is not in the process of recovery," – José Raúl Mulino
The strategic importance of the Panama Canal is evident as it facilitates 5% of global maritime trade and handles 40% of U.S. container traffic. The ports at Balboa and Cristóbal, located at the Pacific and Atlantic ends of the canal, have been operated by Hutchison's subsidiary Panama Ports Company (PPC). CK Hutchison Holdings recently agreed to sell its 90% stake in PPC to a U.S.-led consortium for $19 billion in cash.
This deal, spearheaded by asset manager BlackRock, also includes the sale of other non-Chinese ports. CK Hutchison has clarified that this transaction is unrelated to Trump's assertions about reclaiming the canal.
"I reject, on behalf of Panama and all Panamanians, this new affront to the truth and to our dignity as a nation," – José Raúl Mulino
Despite these clarifications, Donald Trump has reiterated his intentions regarding the canal. His comments have sparked further controversy and drawn criticism from Panamanian officials.
"To further enhance our national security, my administration will be reclaiming the Panama canal, and we’ve already started doing it," – Donald Trump