Panama Canal Authority head Ricaurte Vasquez Morales told the Wall Street Journal that preferential treatment for American ships would violate international law.
The Panama Canal Authority’s administrator told the Wall Street Journal that complying with President-elect Donald Trump’s request for preferential treatment for US ships would create significant operational challenges.
Trump recently criticized the canal’s fees for American vessels, alleging unfair treatment and suggesting Chinese influence. He hinted at potentially reclaiming US control, even mentioning the possibility of military intervention.
Vasquez Morales, CEO of the Panama Canal Authority (ACP), stated that the Canal must adhere to its established rules without exception, emphasizing the importance of neutrality agreements and international law. He highlighted that granting special treatment to any nation, including the US or China, would be a violation of these agreements and could lead to chaos.
Morales dismissed Trump’s claims of Chinese control over the Canal as unfounded, asserting that China has no operational involvement.
“China has no involvement whatsoever in our operations,” he said.
The Panama Canal, a vital global shipping route handling approximately 6% of world trade, was transferred to Panama from US control under the Torrijos-Carter Treaties of 1977. While a Chinese company, CK Hutchison Holdings (formerly Hutchison Whampoa), operates ports near the canal, these are separate from the canal’s operations, which are managed by the ACP under strict neutrality agreements ensuring fair access for all nations.
Panama’s President, Jose Raul Mulino, recently reiterated Panama’s sovereignty over the canal in response to Trump’s statements.
“Every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama,” Mulino stated in a recent social media post.
He explained that the canal’s tariffs are carefully calculated to manage the increasing volume of shipping traffic and are not arbitrarily determined.