In a statement made on Friday, the head of the Panama Canal Authority affirmed that the crucial maritime thoroughfare will continue to be governed by Panama and will remain accessible for trade from all nations. Ricaurte Vásquez addressed the recent assertions made by President-elect Donald Trump, who suggested that the United States should regain control over the canal.
During an interview, Vásquez dismissed claims made by Trump regarding Chinese influence within the canal’s operations, warning that any deviation from existing operational rules would create considerable disorder. He clarified that Chinese enterprises involved in port operations at each end of the canal belong to a consortium based in Hong Kong that won a bidding contract back in 1997. He also noted that U.S. and Taiwanese firms manage other ports situated along the canal.
Trump has indicated that he believes the U.S. should take back control of the canal and has not dismissed the possibility of employing military means to achieve this. “It might be that you’ll have to do something,” Trump remarked, emphasizing the strategic importance of the canal to the United States and labeling the transit fees as “ridiculous.”
Panamanian President José Raúl Mulino has made it clear that the canal will definitively remain under Panamanian jurisdiction. In response to Trump’s statements about the potential for the U.S. to reclaim the canal, Vásquez asserted that there was “no foundation for that sort of hope” and insisted that the importance of maintaining established rules cannot be overstated.
Vásquez underscored that the canal is open to trade from all countries and cannot provide preferential treatment to U.S.-flagged vessels due to a neutrality treaty. “The most sensible and efficient way to do this is to maintain the established rules,” he asserted. Requests for exceptions to the established procedures are routinely denied, as any variations would need to be justified and not arbitrary. The only exception noted under the neutrality treaty is for American military vessels, which are granted expedited passage.
Approximately 70% of the maritime traffic that utilizes the Panama Canal is destined for or originates from U.S. ports. Constructed by the United States in the early 1900s to aid the transit of commercial and military ships between both U.S. coasts, the canal was relinquished to Panama on December 31, 1999, following a treaty established in 1977 with President Jimmy Carter.
Recently, Trump indicated to his supporters that “We’re being ripped off at the Panama Canal,” claiming that the U.S. had “foolishly given it away.” In regards to the canal’s usage fees, Vásquez explained that a set of planned fee increases concluded this month. Future fee adjustments will be evaluated in the upcoming first half of the year to provide users with clear planning, which will also involve a public comment period for transparency.
The Panama Canal stretches 51 miles across the isthmus, allowing vessels to bypass the longer and more expensive route around Cape Horn, located at South America’s southernmost tip. “It is an enormous responsibility,” Vásquez commented regarding Panama’s management of the canal. He pointed out that during the COVID-19 pandemic, the canal took necessary precautions to safeguard its workforce while ensuring it remained operational, emphasizing the international commitment to keeping trade routes open.
