Department of Research, Studies and International News 06-03-2025

Mulino Condemns Statements as an Attack on National Sovereignty Amid Growing U.S.-China Tensions.

Panama’s President, José Raúl Mulino, has strongly dismissed former U.S. President Donald Trump’s assertions that Washington is in the process of reclaiming the Panama Canal. In a direct response, Mulino accused Trump of spreading falsehoods, emphasizing that the waterway remains under Panamanian control.

“Once again, President Trump is lying. The Panama Canal is not being recovered by the United States,” Mulino stated in a post on X. He further described Trump’s remarks as an insult to both Panama’s national integrity and the truth.

His statement came shortly after Trump, in a speech to Congress, claimed that his administration had initiated efforts to regain control of the canal, a key strategic waterway for global trade.

“To further strengthen our national security, my administration will be reclaiming the Panama Canal, and we have already begun the process,” Trump declared. “We’re taking it back.”

Historical and Political Implications

The Panama Canal, a vital trade artery connecting the Atlantic and Pacific Oceans, was historically controlled by the United States. However, in 1999, full authority over its operations was transferred to the Panama Canal Authority (ACP), an independent entity whose leadership is appointed by Panama’s government.

Since taking office in January, Trump has repeatedly voiced concerns about Chinese involvement in the canal’s operations. While there is no evidence that Beijing directly manages the waterway, Trump has raised alarms over China’s growing influence in the region.

His administration has also refused to rule out military intervention as a means to reclaim control, an assertion that has sparked protests in Panama and led the country to lodge a formal complaint with the United Nations.

The canal plays a crucial role in international trade, facilitating approximately 5% of global maritime commerce. For the United States, it is even more significant, handling around 40% of its container traffic.

Panama Pushes Back Against U.S. Claims

Panama’s leadership has remained firm in rejecting any notion that the canal is under foreign control. Ilya Espino de Marotta, the deputy administrator of the canal, reiterated that the waterway is fully managed by Panamanians.

“The canal is operated 100% by Panamanians,” she told reporters in January. “We are an autonomous entity. There is no Chinese management of the canal.”

Meanwhile, Beijing has also denied any interference in canal operations, stating that its investments in Panama are purely commercial.

Trump’s rhetoric about reclaiming the canal appears to be another flashpoint in this ongoing rivalry. However, for Panama, the main concern is safeguarding its sovereignty and maintaining the canal’s status as an independent trade route.

Mulino’s strong response underscores the country’s determination to resist external pressures.