Panama’s President José Raúl Mulino has rejected claims by US President Donald Trump that his administration is “reclaiming” the Panama Canal, calling the statement false and an affront to national sovereignty.
Trump’s remarks came during his address to Congress, where he referenced a newly announced deal involving a US-led consortium acquiring a controlling stake in a company currently operating ports at both ends of the canal. The company, previously controlled by a Hong Kong-based group, is set to be sold to a consortium led by the US investment firm BlackRock Inc.
However, Panama maintains that this transaction is strictly commercial and does not amount to the United States regaining control over the canal. Panama’s government emphasized that it has retained full authority over the waterway since taking control from Washington in 1999, dismissing claims that the deal represents a strategic victory for the US
Mulino responded forcefully to Trump’s statement in a message posted on X, asserting that the deal was not the result of US pressure. “I reject in the name of Panama and all Panamanians this new affront to the truth and our dignity as a nation,” he declared, accusing Trump of “lying again.”
“Cooperation between our governments passes through clear understandings in terms of issues of mutual interest. It doesn’t have anything to do with ‘reclaiming the canal’ nor with tarnishing our national sovereignty.”
President José Raúl Mulino
The transaction, valued at nearly $23 billion — including $5 billion in debt — has been described as a private business deal. The Hong Kong-based CK Hutchison Holdings announced on Tuesday, March 5 that it would sell all shares in Hutchison Port Holdings and Hutchison Port Group Holdings to the BlackRock-led consortium.
Frank Sixt, co-managing director of CK Hutchison, sought to distance the sale from geopolitical tensions, stating, “I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
Despite this, the deal requires approval from the Panamanian government, which could further complicate the narrative surrounding the transaction. The announcement has drawn renewed attention to China’s involvement in the region, with US officials previously voicing concerns about Beijing’s influence over Panama’s strategic infrastructure.
US Concerns Over Chinese Influence
US Secretary of State Marco Rubio met with Mulino in early February, arguing that China exerted significant influence over the canal’s operations, a claim Panama firmly denies. The main concern in Washington has been the role of the Chinese consortium running the ports at both ends of the canal, which some US officials see as a potential strategic threat.
Originally built by the US in the early 20th century, it was transferred to Panama under the terms of a 1977 treaty signed by then-President Jimmy Carter. Trump has repeatedly criticized this agreement, claiming that Carter “foolishly” handed over the crucial waterway.
CK Hutchison Holdings, which has a market capitalization of HKD 148.03 billion as of early March 2025, has seen mixed financial performance. The company’s enterprise value stands at HKD 479.50 billion, with annual revenues of HKD 278.65 billion. Despite recent fluctuations, its stock price has surged by over 21% to HKD 47.101. Analysts project significant growth for the company, with expected annual earnings and revenue increases of 10% and 14.7%, respectively.
However, CK Hutchison still faces financial hurdles, including concerns over its balance sheet and capital allocation. The sale of its port holdings in Panama represents a major shift in its global operations and could have implications for trade routes and investment flows in the region.
As the BlackRock-led acquisition moves forward, the geopolitical and economic ramifications of the deal remain uncertain. While the US views the move as a strategic counter to China’s influence, Panama insists that its sovereignty remains intact, setting the stage for further diplomatic tensions.
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