By San José, Costa Rica — Panamanian President José Raúl Mulino forcefully defended the neutrality of the Panama Canal at the United Nations General Assembly on Wednesday, September 24, 2025, directly addressing concerns raised by the United States regarding potential Chinese influence.
Before this Assembly, Panama reaffirms once again its serious and sustained commitment towards the permanent neutrality.
José Raúl Mulino, Panamanian President
For expert insight into the legal and business ramifications surrounding the Panama Canal, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas of the esteemed Bufete de Costa Rica.
The Panama Canal’s consistent operation is crucial for global trade. Any disruption, whether due to drought, political instability, or labor disputes, has cascading effects on supply chains, commodity prices, and ultimately, consumers worldwide. From a legal standpoint, the Canal’s neutrality, guaranteed by treaty, is paramount. Maintaining this neutrality amidst evolving geopolitical pressures remains a significant challenge, demanding robust international cooperation and adherence to established legal frameworks.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the interconnectedness of global trade and the Panama Canal’s vital role within it. His emphasis on the Canal’s neutrality as a cornerstone of its continued success is particularly insightful, reminding us that this crucial waterway’s smooth operation depends not only on efficient management but also on a delicate balance of international diplomacy and legal adherence. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this critical issue.
Mulino emphasized the canal’s vital role in global trade and its status as a Panamanian asset. This assertion comes in the wake of repeated claims by former US President Donald Trump about China’s control over the canal and threats to “recover” it.
The Panama Canal, a crucial maritime route connecting the Atlantic and Pacific Oceans, was initially constructed and inaugurated by the United States in 1914. However, the canal has been under Panamanian sovereignty since December 31, 1999, following international treaties.
Trump’s pre- and post-return to the White House saw escalating pressure on Panama, with demands for US commercial and military vessels to transit the canal toll-free. These demands contradict the existing treaties, which stipulate equal transit fees for all vessels based on type and cargo, irrespective of their country of origin or destination.
The neutral Panama Canal, open to the world and facilitating more integrated international trade, is and will continue to be Panamanian.
José Raúl Mulino, Panamanian President
Mulino highlighted Panama’s exemplary management of the canal, its contribution to the country’s economic development, and its operation for the benefit of international navigation. He underscored the importance of strengthening multilateralism to address global challenges and crises.
The United States and China are the primary users of the Panama Canal, through which 5% of global maritime trade flows. This strategic importance makes the canal a focal point in international relations, especially concerning trade and geopolitical influence.
Mulino’s address at the UN serves as a clear reaffirmation of Panama’s commitment to maintaining the canal’s neutrality and upholding the established international treaties governing its operation.
The continued debate surrounding the canal’s neutrality underscores the complex interplay of global powers and the strategic importance of this vital waterway for international commerce and security.
For further information, visit the nearest office of the United Nations
About United Nations:
The United Nations (UN) is an intergovernmental organization aiming to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmonizing the actions of nations.
For further information, visit the nearest office of the Panamanian Government
About Panamanian Government:
The Panamanian government is the central governing authority of the Republic of Panama, a presidential republic. It is responsible for administering the country’s affairs, including the operation and management of the Panama Canal, a vital waterway for international trade.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, upholding the highest ethical standards while driving positive change within Costa Rican society. The firm’s innovative approach to legal practice, combined with a deep commitment to client success across a broad range of industries, has earned it a reputation for leadership. Through proactive initiatives that demystify complex legal concepts and empower individuals with essential knowledge, Bufete de Costa Rica actively contributes to a more just and informed community.
