Donald Trump, the President-elect of the United States, has ignited controversy with his recent comments implying the United States could reclaim control of the Panama Canal if Panama does not reduce transit fees. The remarks, made during rallies over the weekend, prompted a strong response from Panama's newly elected President, José Raúl Mulino, who asserted the canal's sovereignty belongs entirely to Panama.
During his speech at Turning Point USA’s AmericaFest event, Trump characterized U.S. charges for using the canal as exorbitant, claiming, "We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else." The canal, completed by the United States more than 100 years ago, was officially handed over to Panama at the end of 1999 under the terms of a treaty signed by President Jimmy Carter.
"I want to express precisely, every square meter of the Panama Canal and its adjacent area belongs to Panama, and will continue to," Mulino stated emphatically through social media. He declared, "The sovereignty and independence of our country are not negotiable. Every Panamanian, here or anywhere in the world, carries it in their heart, and it is part of our history of struggle and irreversible conquest."
Trump's commentary follows weeks of increasingly bold proclamations about U.S. territorial ambitions, portraying Panama's handling of canal operations as unacceptable. He declared, "If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand the Panama Canal be returned to the United States, quickly and without question." This statement marked one of the rare instances where a U.S. leader suggested reclaiming territory from another nation, raising eyebrows internationally.
Seeking to justify his comments, Trump characterized the charges imposed by the Panamanian government as 'ridiculous' and the situation as unfair to U.S. interests. "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity bestowed to Panama by the U.S.," he proclaimed, hinting at underlying tensions over international trade policies and agreements.
Mulino responded, underscoring the established structure for transit fees through the canal, which is based on public sessions discussing market conditions and operational expenses. He noted, "The rates are established considering market conditions, international conditions, operating costs, and the maintenance and modernization needs of the canal."
While Trump focused on what he described as inequitable pricing affecting American ships, Mulino emphasized the independence of the canal’s operations. Trump went as far as to suggest Panama was involved with China, claiming foreign powers were influencing the canal's management. Mulino categorically dismissed this assertion, stating, "The canal is not under direct or indirect control... by the United States or by any other power."
International reactions to Trump's comments have emerged, including statements from Colombian President Gustavo Petro, who expressed solidarity with Panama's stance, vowing to defend its sovereignty. Petro remarked, "If the new U.S. government wants to talk business, we will talk business, face to face, and for the benefit of our people, but dignity will never be negotiated." This rhetoric suggests regional support for Panama's stance against perceived threats to its sovereignty.
Understanding the canal's significance, it stands as one of the key maritime routes globally, facilitating transit for approximately 14,000 vessels annually. The strategic importance of the Panama Canal cannot be overstated; it serves as the primary shortcut for ships traveling between the Atlantic and Pacific Oceans. Due to its historical significance and economic importance, the canal quickly becomes central to discussions about international relations.
Yet, there are practical challenges impacting the canal's operations. Recent droughts have led to significant decrements in vessel traffic, warranting new water conservation measures by the Panama Canal Authority. Ilya Espino de Marotta, the Authority’s chief sustainability officer, highlighted the urgent need for strategies to maintain water flow and operational efficiency, disputing claims about its mismanagement.
Despite the strong declarations on both sides, the pathway forward remains unclear. While Trump positions his administration to take action, the administration of President Mulino appears poised to reject any encroachments on Panamanian sovereignty. The international ramifications of these exchanges raise questions about future U.S.-Panama relations and the stability of trade routes central to global commerce.
The issue of the Panama Canal will likely persist as both governments navigate enhancing mutual interests, with Trump’s administration potentially altering U.S. foreign policy approaches. To this point, the comments exchanged between Trump and Mulino may be reflective of broader tensions and redefine how bilateral agreements are conducted moving forward.
