The head of the Panama Canal Authority has firmly rejected President-elect Donald Trump's claims that China controls the canal and warned that giving U.S. ships preferential treatment would disrupt global trade, The Wall Street Journal reported.
Ricaurte Vásquez Morales, CEO of the Panama Canal Authority, has dismissed Trump's allegations that China controls the crucial trade route. He also cautioned that implementing Trump's suggestion of preferential toll rates for U.S. ships would breach international agreements and disrupt the canal's neutrality.
"The accusations that China is running the Canal are unfounded," Vásquez Morales said in a Wednesday interview. "China has no involvement whatsoever in our operations."
Trump, speaking at a press conference earlier this week, alleged that "China's basically taken it over" and claimed the canal was unfairly charging American vessels higher tolls. The remarks have sparked controversy, with Panamanian officials defending the sovereignty and neutrality of the canal.
Vásquez Morales reiterated that the canal operates under strict rules to ensure fairness. "Rules are rules, and there are no exceptions," he said. "We cannot discriminate for the Chinese, or the Americans, or anyone else. This will violate the neutrality treaty, international law, and it will lead to chaos."
Control of the Panama Canal was transferred to Panama on December 31, 1999, under the terms of the 1977 Torrijos-Carter Treaties signed by former President Jimmy Carter. Since then, the canal has been operated by the Panama Canal Authority, an independent state entity governed by Panamanian officials.
While Chinese companies, such as Hong Kong-based Hutchison Whampoa, lease and operate two cargo terminals near the canal's Pacific and Caribbean entrances, China does not control the canal itself.
Other terminal operators include Singapore's PSA, U.S.-based SSA Marine, and Taiwan-based Evergreen Marine.
"The sovereignty of our canal is not negotiable," said Javier Martinez-Acha, Panama's foreign minister. "It is part of our history of struggle and an irreversible conquest."
Trump also alleged that Panama sought $3 billion from the U.S. for canal repairs. Vásquez Morales refuted the claim, explaining that the canal funds all maintenance projects through its own revenues.
Tolls for ships crossing the canal are determined based on vessel size and type, with fees averaging $750,000 per crossing. Charges range between $300,000 and $1 million depending on cargo and vessel specifications.
"The tolls apply to all ships from around the world, and there are no exceptions," Vásquez Morales said. The only concession for U.S. ships, he clarified, is priority passage for Navy vessels under treaty agreements.
Panama's officials have warned that any attempt to alter the canal's neutrality would damage international relations and the global economy.
The canal, which handles approximately 6% of the world's maritime trade, serves as a critical artery for goods traveling between Asia, the Americas, and Europe.