Panama Scrambles to AUDIT Operator As Trump Promises to Reclaim Territory

Panama has initiated an audit of a Hong Kong-based port operator amid growing concerns over China’s influence in the Panama Canal, following former President Donald Trump’s recent remarks about regaining U.S. control over the strategic waterway.

At a Glance

  • Panama is auditing Hong Kong-based Panama Ports Company, controlled by CK Hutchison Holdings
  • Trump claims American ships are overcharged and unfairly treated at the Panama Canal
  • Panama asserts full control over the canal, emphasizing its sovereignty
  • China’s growing influence in the region raises concerns for U.S. interests
  • The audit follows Trump’s statement about bringing the Panama Canal back under U.S. control

Panama Initiates Audit Amid Rising Tensions

In response to growing pressure from President Trump, Panamanian authorities have launched an audit of the Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings. The comptroller general of Panama announced the audit, stating, “Today, our auditors arrived at the Panama Ports Company to start an exhaustive audit aimed at guaranteeing efficient and transparent use of public resources.”

The news comes in the wake of former President Donald Trump’s recent statements regarding the Panama Canal during his inaugural remarks. Trump’s comments have reignited a debate over the canal’s control and management, drawing attention to the complex geopolitical dynamics surrounding this crucial maritime passage.

During his address, Trump made several assertions about the current state of affairs at the Panama Canal. He claimed, “American ships are being severely overcharged and not treated fairly in any way, shape, or form, and that includes the United States Navy. And above all, China is operating the Panama Canal.”

These statements have been met with swift rebuttals from Panamanian officials. President José Raúl Mulino emphatically declared, “No presence of any nation in the world interferes with our administration.” This response underscores Panama’s commitment to maintaining its sovereignty over the canal and adhering to the neutrality treaty that guarantees equal passage for all nations.

China’s Growing Influence and U.S. Concerns

The audit and the ensuing diplomatic tensions highlight the growing concerns over China’s increasing influence in the region. Since the United States relinquished control of the canal in 1999, Panama has shown a gradual alignment with China, notably joining the Belt and Road Initiative. This shift has not gone unnoticed by U.S. policymakers and strategists.

CK Hutchison Holdings, controlled by the family of Hong Kong billionaire Li Ka-shing, operates 53 ports globally and won concessions for Panama Canal ports in 1997, which were renewed in 2021. This significant Chinese presence near such a strategically important waterway has raised eyebrows in Washington.

The Panama Canal, built by the United States in the early 1900s, was transferred to Panamanian control in 1999 under treaties signed in 1977. The Neutrality Treaty allows the U.S. to use military force to protect the canal’s neutrality, a clause that adds complexity to the current situation.

Trump’s suggestion of potentially using military force to regain control of the canal has further escalated tensions. While such action would likely breach international law, it underscores the canal’s enduring importance to U.S. interests. And reveals just how essential the port is for the United States.

If any president would do it, it’s Trump.