Panamanian President, José Raúl Mulino, has ruled out negotiations with US President-elect, Donald Trump over control of the Panama Canal.

Mulino also rejected the possibility of reducing tolls for US vessels in response to Trump’s threat to demand control of the vital waterway connecting the Atlantic and Pacific Oceans be returned to Washington.

Addressing a press conference, Mulino disclosed that tolls charged for naval ships crossing the canal are based on the amount of water used and the type of ship, a formula that is applied equally to all vessels.

He added that the U.S. is the canal’s biggest customer, and that in the 2024 fiscal year 77% of the cargo that crossed the key transportation route either originated in or was in transit to the U.S. “There is no discrimination against any warship, whether it be from the U.S. or another country,” he averred.

Mulino stressed, “There’s nothing to talk about.”

“The canal is Panamanian and belongs to Panamanians. There’s no possibility of opening any kind of conversation around this reality, which has cost the country blood, sweat and tears.”
José Raúl Mulino

He asserted that Trump’s remarks alleging growing influence from the world’s second-largest economy over the canal may be due to “geopolitical fears that might be valid from their perspective, but in terms of Panama, have absolutely no veracity.”

The canal, inaugurated in 1914, was built by the United States but handed to Panama on 31 December 1999, under treaties signed two decades earlier by then-US president Jimmy Carter and Panamanian nationalist leader Omar Torrijos.

Last week, Trump slammed what he called “ridiculous” fees for US ships passing through the canal and hinted at China’s growing influence. “It was solely for Panama to manage, not China, or anyone else,” Trump said in a post on his Truth Social platform, adding, “We would and will NEVER let it fall into the wrong hands!”

He asserted that if Panama could not ensure “the secure, efficient and reliable operation” of the channel, “then we will demand that the Panama Canal be returned to us, in full, and without question.”

Trump on Wednesday nominated the Miami-Dade County Commissioner, Kevin Marino Cabrera to serve as Ambassador to Panama.

Trump described Cabrera as “a fierce fighter for America First principles” who he said has been instrumental in driving economic growth and fostering international partnerships.

An estimated 5% of global maritime traffic passes through the Panama Canal, which allows ships traveling between Asia and the US east coast to avoid the long, hazardous route around the southern tip of South America.

The United States is its main user, accounting for 74% of cargo, followed by China with 21%.

Claims Of Chinese Interference Rejected

Moreover, Mulino stressed that the canal’s usage fees were “not set at the whim of the President or the administrator” of the interoceanic waterway, but under a long-established “public and open process.”

He emphasized that there is “absolutely” no Chinese interference or participation in anything to do with the Panama Canal. “There are no Chinese at the canal, no Chinese nor any other world power at the canal,” he added.

On Wednesday, Trump wrote on Truth Social, without evidence, that Chinese soldiers were “lovingly, but illegally, operating the Panama Canal.”

Mulino denied that allegation, stating that there are “no Chinese soldiers in the canal, for the love of God.”

Panama established diplomatic relations with China in 2017, after breaking off ties with Taiwan – a decision criticised by Trump’s first administration.

Early this week, dozens of demonstrators gathered outside the US embassy in Panama City chanting “Trump, animal, leave the canal alone” and burning an image of the incoming US President.