Panama to Trump: “China has no influence on our operations”

Panama has strongly rejected claims by US President-elect Donald Trump that China controls the Panama Canal. “The accusations that China controls the canal are unfounded,” Ricaurte Vásquez Morales, head of the Panama Canal Authority, told the Wall Street Journal. “China has no influence on our operations.”

Trump said on Tuesday that the Panama Canal was vital to the United States. “It’s run by China.” He called for control of the waterway to be returned to the United States if it was not treated fairly and called Panama Canal transit fees “highly unfair.” Trump did not rule out using the military to gain control of the canal.

The canal – one of the world’s most important trade routes – was built by the United States in the early 20th century and long controlled before management gradually passed to Panama. It connects the Atlantic with the Pacific. Today’s fees for canal passage are considered to be standard market rates. There are no regulations that would grant the USA special rights simply because of its historical role as a builder.

Vásquez Morales went on to say that rules are rules and there are no exceptions. “We cannot discriminate against the Chinese, the Americans or anyone else. This violates the Neutrality Treaty, international law and will lead to chaos.” He denied that the agency was charging U.S. ships higher fees. The tariffs depend on the size and type of ship.

A Chinese company has reportedly operated two ports at either end of the canal for decades, but the canal itself is operated by the Panama Canal Authority – a government body whose board is elected by the Panamanian government.