Panama Dismisses Trump’s Threat to Retake Control of Strategic Waterway

Panama rebuffs former U.S. President Trump’s suggestion to reclaim the Panama Canal, emphasizing sovereignty and international agreements.

President Jose Raul Mulino has spoken to the nation following US President-elect Donald Trump’s threat to reclaim control of the Panama Canal. This essential waterway significantly boosts Panamanian economic growth by billions each year and plays a vital role in facilitating global trade.

In his video address on Sunday, Mulino stressed that the country’s sovereignty and independence are “non-negotiable” and highlighted the canal’s importance as a part of their “history of struggle and an irreversible conquest.”

“Mulino stated that every square meter of the Panama Canal and its surrounding area belongs to Panama, and it will remain so.”

Over the weekend, Trump voiced his anger on Truth Social and during a speech at the AmericaFest conference regarding what he described as “exorbitant” fees imposed for American vessels passing through the canal. He accused Panama of exploiting the United States with these excessive charges.

He told supporters in Arizona on Sunday that “We’re being taken advantage of at the Panama Canal, just like everywhere else,” despite the “incredible generosity shown to Panama.”

“If the moral and legal principles behind this generous act of giving are not adhered to, we will insist on the immediate and unquestioned return of the Panama Canal to the United States,” Trump declared, cautioning Panamanian officials to “act accordingly.”

Trump asserted his commitment to ensuring that the canal would never come under “the wrong hands,” specifically referencing China. He stressed the importance of maintaining a secure Panama Canal for U.S. commerce and facilitating the swift deployment of the Navy from the Atlantic to the Pacific.

Trump reinforced his message by posting an image on Truth Social depicting an American flag over a narrow waterway, accompanied by the caption, “Welcome to the United States Canal!”

Panama replied to Trump’s tweet concerning the Panama Canal, prompting Trump to respond by renaming it “Welcome to the United States Canal.” pic.twitter.com/snYqWnrdM1

Mulino firmly denied these allegations, asserting that the canal’s rates are determined publicly and transparently based on market conditions, international competition, operating costs, and maintenance requirements. He emphasized that since Panama assumed control of the canal from the United States on December 31, 1999—under the Torrijos-Carter Treaties signed in 1977—there have been no objections or complaints concerning Panama’s management.

He stated that these treaties ensured the canal’s lasting neutrality, ensuring it remains open and secure for every nation. He regarded this as the greatest tribute to those who sacrificed their lives in 1964 fighting for Panama’s sovereignty during the anti-American riots. Mulino dismissed any claims suggesting China, the European Union, or other powers have direct or indirect control over the canal.

The president noted that the canal, overseen by skilled Panamanian experts who guarantee its safe, uninterrupted, efficient, and profitable management, has emerged as a significant source of national pride. It contributes billions to Panama’s economy each year and remains an essential route for international trade.

“The president emphasized that ‘Panama respects other nations and demands respect.’ He expressed his desire to maintain strong relations with the incoming US government, particularly on matters like drug trafficking, terrorism, organized crime, and illegal migration. However, he made it clear that the neutrality of the canal is ‘non-negotiable.’”