Panama responds to Trump’s threat to retake vital waterway

The US president-elect has vowed to prevent the “US canal” from falling into “the wrong hands”

President Jose Raul Mulino has addressed the nation in response to US President-elect Donald Trump's threat to retake control of the Panama Canal, a vital waterway that contributes billions of dollars to the Panamanian economy annually and serves as a crucial artery for global trade.

In his video address on Sunday, Mulino emphasized that the sovereignty and independence of the country are “non-negotiable” and underscored the canal's significance as part of the “history of struggle and an irreversible conquest.”

“Every square meter of the Panama Canal and its adjacent area belongs to Panama, and it will continue to be so,” Mulino declared.

Over the weekend, Trump expressed outrage on Truth Social and during a speech at the AmericaFest conference over what he called “exorbitant” fees charged for the passage of American vessels through the canal, accusing Panama of exploiting the United States with excessive fees.

“We’re being ripped off at the Panama Canal, just like everywhere else,” despite the “extraordinary generosity that has been bestowed on Panama,” he told supporters in Arizona on Sunday.

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“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 proclaimed, warning officials in Panama to “please be guided accordingly.”

Trump also declared that he would never allow the canal to fall into “the wrong hands,” namely China’s, emphasizing that a “secure Panama Canal is crucial for US commerce and the rapid deployment of the Navy from the Atlantic all the way to the Pacific.”

Trump further emphasized his statements by sharing an image on Truth Social of an American flag over a narrow waterway with the caption, “Welcome to the United States Canal!”

Panama responded to Trump’s tweet about the Panama Canal.

Then Trump responded by renaming the canal with “welcome to the United States Canal”. pic.twitter.com/snYqWnrdM1

— Wall Street Mav (@WallStreetMav) December 22, 2024

Mulino strongly rejected these claims, stating that the canal’s rates are set publicly and transparently, considering market conditions, international competition, operating costs and maintenance needs. He highlighted that since the transfer of the canal from the United States to Panama on December 31, 1999, as per the Torrijos-Carter Treaties signed in 1977, there have been no objections or complaints regarding Panama’s control.

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“These treaties also established the permanent neutrality of the canal, guaranteeing its open and secure operation for all nations,” he said, calling it the best tribute to the martyrs who fought for Panama’s sovereignty and dignity during the 1964 anti-American riots. Mulino rejected any notion that China, the European Union, or any other power has direct or indirect control over the canal.

The canal has become a source of strong national pride, managed by qualified Panamanian professionals who ensure its safe, continuous, efficient, and profitable operation, the president added. It also contributes billions of dollars to the Panamanian economy annually and serves as a crucial artery for global trade.

“Panama respects other nations and demands respect,” the president concluded, stating that he aspires to preserve good relations with the incoming US government on issues such as drug trafficking, terrorism, organized crime, and illegal migration, but the neutrality of the canal is “non-negotiable.”