Panama's President José Raúl Mulino has firmly rejected threats from President-elect Donald Trump, who demanded the return of control over the Panama Canal, labelling it "a national asset" necessary for U.S. commerce and security. Trump's remarks, made via Truth Social, came after he criticized Panama for its toll fees and raised alarms about perceived Chinese influence on the canal's management.
"Every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama," Mulino asserted in a video posted on X, addressing Trump's claim without directly mentioning his name. The Panamanian leader made these comments on the heels of Trump's pronouncements about the fairness of charges imposed on U.S. ships using the canal.
Trump's initial comments indicate his view of the situation as dire, expressing dissatisfaction with what he described as "ridiculous" fees imposed on American ships. He argued on his platform, "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity bestowed to Panama by the U.S. This complete 'rip-off' of our Country will immediately stop." His tweets reflect a larger frustration with Panama's handling of the canal, labeling it as not merely unfair but potentially deleterious to U.S. interests.
Notably, the Panama Canal remains pivotal; it plays a significant role in international trade, handling 6% of global maritime traffic. Approximately 70% of canal traffic is tied to U.S. interests, underscoring the waterway's importance for American commerce. While the canal has faced challenges, including the recent drought conditions limiting vessel capacity, its profitability has remained impressive, with $3.45 billion reported last fiscal year.
Chinese interest has also surfaced as a concern for Trump, who warned against allowing control to slip to Beijing. He remarked, "It was not [the canal] to be managed by China, or anyone else. We would and will NEVER let it fall to the wrong hands!" This highlights the strategic dimensions of the dispute, as U.S. relations with China continue to be fraught with tension over trade and influence.
Historically, the Panama Canal's control was transferred from the U.S. to Panama through the 1977 Torrijos–Carter Treaties, which culminated on December 31, 1999. Trump’s rhetoric reflects questions about whether this transfer of control was wise, as he expressed concerns about Panama's ability to operate the canal effectively. Mulino, responding firmly, emphasized, "The canal has no direct or indirect control from China, nor the European Union, nor the United States or any other power... as a Panamanian, I reject any manifestation of misrepresentation."
Despite Trump's abrasive stance, Mulino expressed hope for maintaining diplomatic relations with the incoming administration, underlining Panama's commitment to control its own assets. "The tariffs are determined by experts based on operational costs and supply-and-demand dynamics," he explained, stressing the independent administration of the canal without external influence.
Trump's threat to demand the canal's return, if not managed according to his standards, places significant pressure on U.S.-Panama relations. He warned officials, "please be guided accordingly," indicating he would not tolerate what he views as infractions against U.S. interests.
Following Mulino's resolute message, Trump retorted on Truth Social, "We'll see about ذلك!", signalling his unwavering stance. The confrontation over the Panama Canal mirrors broader geopolitical tensions the U.S. faces, especially as it navigates security and trade realities involving China.
Maritime expert and historian Sal Mercogliano interpreted Trump's comments as significant, acknowledging the canal's role as a strategic choke point. "The relationship between the U.S. and Panama over the canal has always been symbiotic. Concern is warranted, but there is no indication of efforts to curtail American trade," he asserted.
The Panama Canal's operational challenges are compounded by the prolonged drought, which has decreased vessel transits by 29% compared to previous figures. The canal's authority has already begun addressing these complications by adjusting tolls to manage diminished traffic, reflecting its commitment to ensuring efficient operations.
Trump's comments on the canal represent both a historical grievance and contemporary uncertainties. His administration's approach to Panama, as with Canada and NATO allies, reflects his broader inclination to assert greater control and influence over resources deemed integral to U.S. power. Investigations concerning whether Panama can maintain control over this significant waterway will likely continue as his new term approaches.
The tension unleashed by Trump's stance over the Panama Canal signifies more than just economic interests; it embodies enduring discussions of sovereignty, management, and international cooperation. With both leaders seeming to want stability, it remains to be seen how this dispute will evolve, especially amid broader geopolitical concerns.
