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31 January 2025

Panama President Unyielding On Canal Ownership Amid US Tensions

José Raúl Mulino asserts the canal belongs to Panama, clarifies management role amid US concerns.

Panama's President José Raúl Mulino firmly stated on Thursday there will be no negotiations with the United States over the ownership of the Panama Canal, declaring, "It’s impossible, I can’t negotiate. That is done. The canal belongs to Panama." This pronouncement came during his weekly press conference in Panama City, where Mulino stressed the finality of Panama's control over the key waterway as détente between the two nations continues to evolve.

The upcoming visit from U.S. Secretary of State Marco Rubio, scheduled for February 2, 2025, holds significance for both countries. While the visit could serve as a backdrop for substantive discussions on shared interests such as immigration and combating drug trafficking, the shadow of U.S. President Donald Trump's remarks about the canal looms large. Trump has made statements implying the U.S. might reclaim the canal, alluding to perceived Chinese involvement, particularly his assertion during his inauguration speech, "Above all, China is operating the Panama Canal," which he claimed could disadvantage U.S. vessels.

Mulino sought to ease tensions related to these claims, attempting to clarify misconceptions about the canal's management. The canal, which the U.S. built in the early 1900s, was handed over to Panama on December 31, 1999, following the 1977 treaty signed by President Jimmy Carter. While operations at the Panama Canal often involve various international stakeholders, Mulino emphasized, "The canal belongs to Panama," underlining Panama's sovereignty over the waterway.

Rumors and misconceptions about Chinese control at the canal have surfaced, particularly because port operations are managed by a Hong Kong consortium. Mulino remarked, "The only thing I want is to clear all the garbage from the path, clean the table and be able to speak with the United States and very frankly about issues including immigration, security and the fight against drug trafficking." This statement reflects his focus on pragmatic issues, disregarding distractions related to ownership.

During the press conference, Mulino expressed hope for productive dialogue with Rubio, aiming to shift discussions away from ownership disputes and focus more on bilateral cooperation on pressing matters. Both leaders are expected to address the nuances of migration and security concerns affecting both nations. Panama’s status as the first foreign visit for the new U.S. Secretary of State indicates the importance of the relationship, even as ownership of the canal remains non-negotiable.

The backdrop of U.S.-Panama relations has been complex, colored by historical events and modern concerns. An increased U.S. focus on the canal has emerged under the Trump administration, highlighted by calls for reciprocal arrangements and accusations of unfair treatment concerning canal fees. Trump has warned of high charges affecting U.S. military vessels and commercial shipping, asserting these issues warrant serious reconsideration of operational management.

This rattling narrative has prompted Mulino to solidify his position. Should Rubio's visit open up dialogue and cooperation on shared concerns, it could also signal potential easing of international apprehensions surrounding China's role and influence within the canal's operations. With lasting historical tensions reshaping current geopolitics, it is up to both nations to navigate the diplomatic waters effectively.

The Panama Canal, recognized globally as one of the most strategic maritime passages, connects the Atlantic and Pacific Oceans, facilitating around 5% of global trade. Its management now rests with Panama, which is determined not to revise historical treaties or concede operational oversight. Mulino's emphasis on the unequivocal ownership marks the end of speculation surrounding potential U.S. claims.

Secretary Rubio's impending visit will test the waters for future cooperation and mutual benefit, but the ownership of the Panama Canal is settled. Mulino's statements reflect Panama's sovereignty and the importance for both nations to pursue constructive dialogue on pressing issues without delving back to ownership rhetoric.