Panamanian President Jose Raul Mulino on Thursday ruled out negotiations with U.S. President-elect Donald Trump over control of the Panama Canal, denying that China was interfering in its operation.
Mulino also rejected the possibility of reducing tolls for U.S. vessels in response to Trump’s threat to demand control of the vital waterway connecting the Atlantic and Pacific oceans be returned to Washington.
“There’s nothing to talk about,” Mulino said at a press conference.
“The canal is Panamanian and belongs to Panamanians. There’s no possibility of opening any kind of conversation around this reality, which has cost the country blood, sweat and tears,” he added.
The canal, inaugurated in 1914, was built by the United States but handed to Panama on December 31, 1999, under treaties signed some two decades earlier by then-U.S. President Jimmy Carter and Panamanian nationalist leader Omar Torrijos.
Trump on Saturday slammed what he called “ridiculous” fees for U.S. ships passing through the canal and hinted at China’s growing influence.
“It was solely for Panama to manage, not China, or anyone else,” Trump said in a post on his Truth Social platform. “We would and will NEVER let it fall into the wrong hands!”
If Panama could not ensure “the secure, efficient and reliable operation” of the channel, “then we will demand that the Panama Canal be No Chinese returned to us, in full, and without question,” he said.
US accounts for 74% of canal cargo
An estimated 5% of global maritime traffic passes through the Panama Canal, which allows ships traveling between Asia and the U.S. East Coast to avoid the long, hazardous route around the southern tip of South America.
The United States is its main user, accounting for 74% of cargo, followed by China with 21%.
Mulino said the canal’s usage fees were “not set at the whim of the president or the administrator” of the interoceanic waterway, but under a long-established “public and open process.”
“There is absolutely no Chinese interference or participation in anything to do with the Panama Canal,” Mulino said.
Trump claims Chinese operate canal
On Wednesday, Trump alleged on Truth Social, without evidence, that Chinese soldiers were “lovingly, but illegally, operating the Panama Canal.”
Mulino denied that allegation.
“There are no Chinese soldiers in the canal, for the love of God,” he said.
Panama established diplomatic relations with China in 2017, after breaking off ties with Taiwan — a decision criticized by Trump’s first administration.
On Tuesday, dozens of demonstrators gathered outside the U.S. embassy in Panama City and chanted “Trump, animal, leave the canal alone” and burned an image of the incoming U.S. president.
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