Panamanian President José Raúl Mulino dismissed claims by President-elect Donald Trump of higher fees charged to U.S. ships to use the Panama Canal and scoffed at threats to take over the vital waterway because of Chinese interference.
“The tolls are not set at the whim of the presidents [of Panama] and the administrator of the [canal]. They are set in a public and open process in which clients and other actors participate,” Mulino said at a Thursday news conference.
He added, “There are no Chinese soldiers in the canal, for the love of God. It’s nonsense. There are no Chinese at the canal, no Chinese nor any other world power at the canal.”
Mulino’s remarks came after Trump wrote several lengthy posts on Truth Social on Wednesday: “Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal. … The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security … When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else, it was solely for Panama to manage, not China, or anyone else. It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage.”
Trump’s post on Truth Social came a few days after a public speech in Phoenix, during which he said, “if shipping rates are not lowered, we will demand that the Panama Canal be returned to us, in full, quickly and without question.”
Related: Why the Panama Canal is so important to Trump
The Panama Canal, which opened in 1914, was built by the United States. The 51-mile waterway connects the Atlantic and Pacific oceans. It was administered by the U.S. until 1999, when control of the waterway was given solely over to Panama under a treaty signed by President Jimmy Carter in 1977.
The Panama Canal carries an estimated 3% of global maritime traffic, connecting 180 maritime routes that reach 1,920 ports in 170 countries around the world. Almost 9,000 Panamanians work at the canal.
The Panama Canal’s net income increased about 9.5% in the fiscal year ended in September to $3.45 billion, according to the Panama Canal Authority. During the year, 9,944 ships transited the canal.
Vessels to and from the U.S. accounted for about 75% of traffic through the Panama Canal in the fiscal year ending in September, followed by China at 22%, Japan at 14% and Korea at 9%, the Panama Canal Authority said.
Last year, the Panama Canal experienced its worst drought since 1950, which limited ship traffic through the waterway. The resulting delays caused shipping rates through the canal to reach record highs.
To alleviate the impact of future droughts, the canal authority has proposed the $1.6 billion Rio Indio Reservoir project, which is still being planned by officials from the country.
In addition to taking control of the Panama Canal, Trump has also floated ideas of taking over Greenland and making Canada the 51st U.S. state.
“If Canada was to become our 51st state, their taxes would be cut by more than 60%, their businesses would immediately double in size, and they would be militarily protected like no other country anywhere in the world,” Trump posted on Truth Social Wednesday.
Trump also posted, “the ownership and control of Greenland is an absolute necessity for reasons of national security and global freedom.”
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