President-elect Trump has threatened to reclaim the Panama Canal, referring to it as the “US canal” and vowing to prevent it from falling into “the wrong hands.”
Panamanian President José Raúl Mulino has responded to President-elect Trump’s threat to seize the Panama Canal, a vital waterway generating billions for Panama’s economy and integral to global trade. In a national address, Mulino declared Panama’s sovereignty and independence are non-negotiable, emphasizing the canal’s historical importance as a symbol of Panamanian struggle and victory.
Mulino firmly stated, “Every square meter of the Panama Canal and its adjacent area belongs to Panama, and it will continue to be so.”
Trump, expressing anger over what he called “exorbitant” canal fees for American vessels, accused Panama of exploiting the U.S. on Truth Social and at the AmericaFest conference. He claimed the U.S. is “being ripped off,” despite its past generosity towards Panama.
“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to the United States of America. In full. Quickly and without question,” Trump declared, urging Panamanian officials to heed his warning.
Trump asserted he would not allow the canal to fall under China’s control, highlighting its importance for U.S. commerce and naval deployment between the Atlantic and Pacific. He underscored his message on Truth Social with an image of an American flag over a waterway captioned, “Welcome to the United States Canal!”
Mulino refuted these claims, asserting that canal fees are publicly and transparently determined based on market conditions, international competition, operational costs, and maintenance. He noted that since the canal’s transfer to Panama on December 31, 1999, as per the 1977 Torrijos-Carter Treaties, there have been no complaints regarding Panamanian control.
“These treaties also established the permanent neutrality of the canal, guaranteeing its open and secure operation for all nations,” Mulino stated, referring to the treaties as a tribute to those who fought for Panama’s sovereignty during the 1964 anti-American riots. He denied any Chinese, European Union, or other influence over the canal.
The president highlighted the canal as a source of national pride, managed by Panamanian professionals, ensuring its safe, efficient, and profitable operation. Its contribution to the Panamanian economy is substantial, and it serves as a crucial artery for global trade.
“Panama respects other nations and demands respect,” Mulino concluded, expressing a desire for good relations with the incoming U.S. administration on issues like drug trafficking and terrorism, but emphasizing that the canal’s neutrality is non-negotiable.