PANAMA CITY — On Wednesday, the President of Panama, José Raúl Mulino, criticized U.S. President Donald Trump for misleading claims about the Panama Canal. Trump stated in his address to Congress that his administration is “reclaiming” the canal.
Trump’s comments referred to a new agreement where a consortium led by BlackRock Inc., a U.S.-based investment management firm, would acquire a controlling interest in a company previously run by a Chinese group. This company operates ports at both entrances of the Panama Canal.
Panama firmly states that it exercises complete authority over the canal, and the Chinese consortium’s operation of nearby ports does not signify Chinese dominion over the waterway. Consequently, the transaction to a U.S. firm doesn’t equate to the U.S. “reclaiming” the canal, and Panama’s administration classified it as a private business deal.
Mulino publicly criticized the notion that U.S. influence drove the sale. “I reject in the name of Panama and all Panamanians this new affront to the truth and our dignity as a nation,” Mulino expressed online, directly accusing Trump of deceit.
Trump has repeatedly asserted a desire to regain control of the Panama Canal, stating the U.S. surrendered it improperly and overpays to use it.
U.S. Secretary of State Marco Rubio engaged with Mulino earlier this year, arguing that China held sway over the canal’s functions due to the Chinese group’s oversight of the ports, a claim Panama strongly denies.
“Our cooperation with the U.S. hinges on transparent agreements on mutual interests,” Mulino stated. “It is unrelated to ‘reclaiming the canal’ or undermining our sovereignty.”
According to a recent filing, CK Hutchison Holdings announced it is selling its holdings in Hutchison Port Holdings and Hutchison Port Group Holdings to BlackRock’s consortium. This deal, with a nearly $23 billion valuation and $5 billion in debt, is pending government approval in Panama.
The Panama Canal, constructed by the United States in the early 1900s to aid maritime passage between its coastal regions, was subsequently transferred to Panama on December 31, 1999, under a treaty signed by President Jimmy Carter in 1977. Trump has often claimed that Carter erroneously relinquished the canal.
Frank Sixt, co-managing director at CK Hutchison, described the deal as “the result of a swift, discreet, but competitive process involving multiple bids and interest.” He emphasized that the transaction is purely commercial and not connected to recent political narratives surrounding the Panama Ports.
