The Panama Canal remains firmly under Panamanian control, as reiterated by President José Raúl Mulino following recent controversial remarks from former President Donald Trump. Trump, during a rally and on his social media platform Truth Social, hinted at the possibility of reclaiming the canal, declaring its management to be fundamentally flawed and asserting the U.S. should once again take control if tariffs imposed by Panama do not change.
On Sunday, Mulino emphatically responded, stating, "Every square meter of the Panama Canal and its adjacent area is of Panama and will remain so." He emphasized the sovereignty of Panama over the canal, which was established through the 1977 Torrijos-Carter Treaties and implemented when the U.S. relinquished control on December 31, 1999.
Trump lamented what he referred to as "ridiculous" canal tolls during his speech at the conservative AmericaFest event, insisting, "This complete scam to our country will end immediately." He criticized former President Jimmy Carter for the initial agreement to hand over the canal, framing it as unwise. Trump claimed this handover allowed for unfair treatment of U.S. businesses and naval operations reliant on the route connecting the Atlantic and Pacific oceans.
"Our Navy and commerce have been treated very unfairly and recklessly. The fees charged by Panama are outrageous," Trump stated, reflecting sentiments echoed during his previous term as President. He pointed out the growing influence of China as problematic for U.S. interests, misconstruing the nature of control Panama exerted over the strategic waterway. Despite his claims, no Chinese entities manage the canal itself; rather, HK-based CK Hutchinson Holdings operates two ports at its entrance, primarily affecting shipping logistics.
Mulino, elected earlier this year, summarily dismissed Trump's assertions as fabrications. He remarked, "No nation, including the United States or China, holds direct or indirect control over the Canal. The Panama Canal’s sovereignty is irreversible." He also clarified how ferry fees are aligned with operational costs and market conditions, stating, "The fees are not whims, they are established with careful consideration of maintenance and expansion necessities."
Mulino reminded the former U.S. leader of Panama’s sovereignty as inscribed within international agreements and urged cooperation on pressing issues such as illegal migration, narcotics trafficking, and regional security, underscoring the importance of maintaining respectful bilateral relations.
Historical tension surrounding the Panama Canal is extensive. The U.S. originally engineered the channel for its military and commercial expediency, and it remained under U.S. control for most of the 20th century. The transition of the canal to Panamanian administration under the Torrijos-Carter Treaties represented Panama's assertion of national sovereignty, and the conclusion of the handover solidified Panama's claim.
Trump's threats signify the potential for heightened diplomatic strain between the U.S. and Panama, particularly if he acts upon these statements during his renewed tenure. Meanwhile, troubles reported within the canal's operations, stemming from recent droughts affecting shipping traffic, had already forced increased tariffs, which may serve as fodder for Trump's rhetoric.
While the reassertion of U.S. control over the Panama Canal would seem like a political hyperbole, it demonstrates past grievances surrounding sovereignty and operational control remain potent issues within U.S.-Panama relations. The responses from both leaders highlight the challenging balance of cooperation and respect for sovereignty amid geopolitical shifting dynamics.
Mulino's decisive response encapsulated this sentiment: "The independence of our country is non-negotiable," indicating Panama intends to uphold its rights and history pertaining to the canal.
