Panama Rejects Trump’s Demand for Free US Canal Access

Panama president, Jose Raul Mulino

Tensions Rise Over Control of Strategic Trade Routes

Panama's president, Jose Raul Mulino, firmly rejected US president Donald Trump's demand for free US military and commercial access through the Panama Canal. Trump, during an address on 26 April, asserted that the US deserves free passage, citing America's historic support in the canal’s construction.

However, Mulino clarified that the Panama Canal Authority (ACP), an autonomous entity, solely governs transit operations and fees. “The neutrality treaty and the organic law of the Panama Canal regulate all ship transits,” he stated. Mulino emphasized that no alternative agreement exists that would permit such free access.

The US and Panama jointly managed the canal until it was officially handed over to Panama in 1999. Since then, Panama has independently operated the canal under international law.

Trump's Renewed Focus on Canal Control

Trump’s recent remarks align with his broader agenda of challenging Panama's ownership of the strategic waterway. He reiterated claims that China holds undue influence over the canal's operations, an accusation he made both before and after assuming office in January.

Earlier this month, US Defense Secretary Pete Hegseth announced Washington’s pursuit of an agreement for increased warship access through the canal. Currently, US shipping lines account for 74% of the cargo volume passing through the canal, followed by Chinese lines at 21%, according to the ACP.

Moreover, Trump declared that the US is “reclaiming” the canal following BlackRock's announcement of plans to purchase two ports flanking the canal from Hong Kong-based CK Hutchison. Yet, Mulino denounced Trump’s claim as entirely false, defending Panama’s sovereignty and national dignity.

Rising Geopolitical Tensions

Meanwhile, Beijing expressed discontent over CK Hutchison’s intended sale, criticizing the move as a "betrayal of Chinese interests." China’s government has confirmed it is closely monitoring the situation, signaling potential diplomatic friction.

The battle over the Panama Canal symbolizes broader tensions in global trade, sovereignty, and geopolitical influence, with the US, Panama, and China all holding strong, conflicting interests.