Panama Canal CEO Says Trump’s Plans Would ‘Lead to Chaos’

The Danish cargo ship Lars Maersk sails through the Agua Clara Locks of the Panama Canal in Colon City, Panama, on December 28, 2024. On 31 December 2024, Panama will celebrate the 25th anniversary of sovereignty over the Canal. ARNULFO FRANCO / AFP

Granting Donald Trump’s demand for U.S. ships passing through the Panama Canal to get preferential treatment would “lead to chaos,” the head of the authority running the waterway said Wednesday.

“Rules are rules and there are no exceptions,” Panama Canal Authority leader Ricuarte Vasquez Morales told the Wall Street Journal.

“We cannot discriminate for the Chinese, or the Americans, or anyone else,” he said in an interview with the U.S. financial daily. “This will violate the neutrality treaty, international law and it will lead to chaos.”

The United States built, owned and operated the Central American canal until U.S. President Jimmy Carter struck a deal in the 1970s to gradually hand over control of the vital waterway to the Panamanian authorities.

U.S. President-elect Trump has taken to speaking out against the deal, refusing on Tuesday to rule out using military action to take it.

The Republican has also threatened to seize Greenland and to use “economic force” against neighboring Canada.

One of Trump’s fiercest criticisms of the Panama Canal is that it is effectively controlled by China — an accusation Vasquez Morales said was “unfounded.”

“China has no involvement whatsoever in our operations,” he told the Wall Street Journal.

While a Chinese company operates two ports on either end of the canal, the canal itself is run by the Panama Canal Authority.

Vasquez Morales insisted that the Panama Canal Authority does not charge U.S. ships higher rates than anyone else.

The only exception to its rules, he added, was that US Navy vessels get priority treatment as part of the agreement struck in the 1970s, allowing them to swiftly travel between the Atlantic and Pacific Oceans.

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.