Panama president says Trump ‘lying’ about reclaiming the canal

A Clash of Words: Panama and the United States Over the Panama Canal

The Panama Canal, one of the most strategic waterways in the world, has become the focal point of a heated exchange between Panamanian President José Raúl Mulino and former U.S. President Donald Trump. In a recent statement, Mulino accused Trump of lying after the latter claimed that the United States was “reclaiming” the Panama Canal. Trump made these remarks during his annual address to the U.S. Congress, stating that the U.S. had already begun the process of taking back the canal to enhance national security. Mulino was quick to respond, denying any such move and calling Trump’s claims a direct affront to Panama’s dignity and sovereignty.

The Port Sale at the Heart of the Controversy

At the center of this dispute is the sale of a controlling stake in Hutchison Port Holdings, a company operating the ports at both ends of the Panama Canal, from a Chinese group to the U.S.-based investment firm BlackRock. The deal, valued at nearly $23 billion, including $5 billion in debt, has sparked tensions between the two nations. Trump referenced this sale in his speech, implying that it was part of a broader effort by the U.S. to regain control of the canal. However, Mulino and the Panamanian government have repeatedly clarification that the sale is merely a private transaction and does not signify any shift in ownership or control of the Panama Canal itself.

Historical Context: The Panama Canal and U.S. Influence

The Panama Canal, built by the United States in the early 1900s, was a testament to American engineering and strategic foresight. For decades, it served as a critical waterway for both commercial and military vessels, connecting the Atlantic and Pacific Oceans. However, in 1977, under President Jimmy Carter, the U.S. agreed to transfer ownership of the canal to Panama by the end of 1999. This decision was met with criticism from many in the U.S., including Trump, who has repeatedly claimed that Carter “foolishly” gave away the canal. Trump has long argued that the U.S. should never have relinquished control of the canal, contending that the country was being overcharged for its use and that China had gained too much influence over its operations.

Trump’s Claims and Panama’s Response

Trump’s assertion that the U.S. is “reclaiming” the Panama Canal has been met with strong opposition from Panama. President Mulino has been adamant that the canal is fully under Panamanian control and that the privatization of port operations does not equate to any form of foreign control. The Panamanian government has consistently rejected the notion that China exerts any influence over the canal’s operations, despite Trump’s claims to the contrary. In February, U.S. Secretary of State Marco Rubio met with Mulino to discuss these concerns, but Panama has maintained its position that the canal’s operations are entirely independent of Chinese influence.

The Geopolitical Significance of the Panama Canal

The Panama Canal remains one of the most vital waterways in the world, handling 5% of global maritime trade and 40% of U.S. container traffic. Its strategic importance cannot be overstated, which is why the recent sale of port operations has sparked such intense debate. While the sale of Hutchison Port Holdings to BlackRock may seem like a straightforward business deal, it has been interpreted by some as a move to counterbalance Chinese influence in the region. However, Panama has been clear that the sale does not imply any shift in the canal’s ownership or control, and that it remains fully committed to maintaining the waterway’s neutrality and efficiency.

The Broader Implications: Sovereignty and Geopolitical Tensions

The spat between Trump and Mulino highlights the broader tensions between the U.S. and Panama over the Panama Canal. While the U.S. has long seen the canal as a strategic asset, Panama has sought to assert its sovereignty over the waterway since gaining full control in 1999. The recent port sale has reignited these tensions, with Trump using the opportunity to push his narrative of reclaiming American influence. However, Panama has been resolute in its stance, rejecting any suggestion that the sale represents a U.S. takeover of the canal. The situation underscores the delicate balance of power and influence in the region, as well as the ongoing challenges of international diplomacy in an increasingly complex geopolitical landscape.