The Panama Canal, one of the most significant maritime passages in the world, remains at the center of international attention as Panama's President Raúl Mulino addresses concerns over its management and global influences. The canal, a vital trade artery connecting the Atlantic and Pacific Oceans, facilitates over 14,000 vessels annually, accounting for more than 5% of global trade. Operated by Hutchison Ports, a subsidiary of Hong Kong-based CK Hutchison Holdings, this 66-mile-long waterway generates billions in revenue for Panama through shipping tolls.
Mulino recently reaffirmed Panama's sovereignty over the canal, emphasizing that its neutral status, as established by the 1977 treaty with the United States, is non-negotiable. This treaty, which saw the US return control of the canal to Panama, ensures that the canal remains a strategic yet neutral waterway, with provisions for US military intervention should its operations face threats from internal conflict or foreign powers.
"We have to wait until that audit ends before we can reach our legal conclusions and act accordingly." – Mulino
In light of growing geopolitical tensions, Mulino announced that Panama will not renew its 2017 memorandum of understanding with China regarding the Belt and Road Initiative. This decision comes amid US concerns about China's increasing presence around the canal. US Secretary of State Marco Rubio has hinted at potential measures to safeguard US interests in the region, underscoring the strategic importance of this global trade route.
"I think this visit opens the door to build new relations … and try to increase as much as possible US investments in Panama," – Mulino
Hutchison Ports, a major player in global maritime logistics overseeing 53 ports across 24 countries, including the US, UK, Australia, and Canada, remains crucial to the canal's operations. Despite this extensive international footprint, concerns linger about foreign influence over such a pivotal economic asset. The canal's neutrality is paramount to both Panama and the international community, given its role in facilitating seamless global trade.
In addition to addressing canal sovereignty, Panama and the US are in discussions regarding a migrant repatriation program. President Mulino confirmed that this initiative would proceed under US financial support.
"Yes. Exactly … We can do that, without a problem, under the total cost of the US. Panama won’t invest a single dollar in it." – Mulino
"Panama won’t invest a single dollar in it" – Mulino
These talks illustrate a broader diplomatic engagement between Panama and the US as they seek to strengthen bilateral relations and explore avenues for increased American investment in Panama. The canal remains a cornerstone of this partnership, as both nations recognize its critical role in international commerce.
