Panama City marked the 25th anniversary of the historic handover of the Panama Canal from the United States with both celebration and solemn reflection as tensions simmered over renewed demands from U.S. President-elect Donald Trump about potential American control of the strategic waterway.
The ceremony on December 31, 2024, honored the significant milestone of the transfer, which was completed on the same date 25 years ago. Panama’s President José Raúl Mulino led the commemoration, expressing both joy over the anniversary and sorrow over the recent passing of former President Jimmy Carter, who played a pivotal role in negotiating the 1999 treaty. Mulino remarked, "On this, such a special day... a mix of happiness for this 25th anniversary of having the canal in Panamanian hands, and the sadness we feel for the death of former President Jimmy Carter."
The commemoration was marked by moments of silence for Carter, who was widely respected for his role alongside former Panamanian leader Omar Torrijos to establish the treaty returning the canal to Panama. Mulino emphasized the vision and nobility of these leaders, stating they "had the vision and nobility to take the road of justice."
Despite the festivities, Trump has cast a shadow over the event with his recent statements threatening to reclaim control of the canal. He has criticized Panama for increasing fees for passage through the canal, describing the conditions as "exorbitant" and railing against what he sees as violations of the 1977 agreement. Trump claimed, "This complete ‘rip-off’ of our Country will immediately stop," pledging to demand the canal's return "in full, quickly and without question" if he feels the treaty conditions are not upheld.
During the ceremony, Mulino sidestepped direct mentions of Trump’s remarks but was clear about Panama’s commitment to maintaining control over the canal. He stated, "There are no hands involved in the canal other than Panama’s. Rest assured, it will be in our hands forever." His assertion aimed to quell concerns about outside influence, particularly allegations of increased Chinese involvement.
Historically, the construction of the Panama Canal was long sought after by colonial powers, with the U.S. eventually succeeding after supporting Panama's independence from Colombia. Critics have pointed out the inherent violations of Panama’s sovereignty leading up to the 1977 treaties, which formally established the return of the canal to Panamanian control. The regulations set forth by the treaties mentioned rights for the U.S. to act under specific circumstances to protect the canal's operation, but not to regain control.
Alongside issues of sovereignty and control, the operational realities of the canal have shifted significantly since the handover. There has been notable traffic growth—17% from 1999 to 2004—and extensive upgrades have been necessary to accommodate larger vessels. The canal’s expansion, completed in 2016 with costs over $5.2 billion, has allowed for modernization, but recent drought conditions have impacted shipping rates, resulting in additional increases for users.
The ceremony also acknowledged the sacrifices made by those who fought for the canal's return, including commemorations of the Martyrs Day on January 9, 1964, when protests turned deadly as Panamanian students sought to raise their national flag by the U.S. flag, leading to violent confrontations.
Prominent figures, including Jorge Luis Quijano, the canal's administrator from 2014 to 2019, reinforced the message of unwavering Panamanian sovereignty over the waterway. Quijano stated, "There's no clause of any kind in the neutrality agreement..." to allow for the canal's reclamation by the U.S., highlighting the futility of Trump's assertions.
Adding to the dialogue, former Panamanian President Martín Torrijos expressed resolute sentiments of national pride and the importance of independence. He remarked, "Any attempt to reverse or violate our sovereignty will be condemned and rejected by all Panamanians."
The tension surrounding the canal reflects not just contemporary political dynamics but also deep historical roots—echoing the complex relationship between the U.S. and Panama. With China weighing heavily on global dialogues, both nations have publicly denied claims of undue influence or presence at the canal, emphasizing Panama’s sovereignty.
Ricaurte Vásquez, current canal administrator, affirmed the resilience of Panama over challenges posed by climate change, global economic shifts, and demands within international trade. His comments underlined the canal's role as not merely a commercial route but also as symbol of Panamanian independence and capability.
Overall, the 25th anniversary was not only about celebrating the canal’s operational success under Panamanian governance but also reaffirming national pride and the commitment to defend their hard-won sovereignty against foreign demands.