Panama rejects Trump’s threat to retake control of canal
Panamanian President Jose Raul Mulino dismissed remarks by U.S. President-elect Donald Trump threatening to retake control of the Panama Canal unless transit fees are reduced, particularly for American ships.
“The canal belongs to Panama,” Mulino said in a video posted Sunday on his X account. “As president, I want to express precisely that every square meter of the Panama Canal and its adjacent zone belongs to Panama and will remain so. The sovereignty and independence of our country are not negotiable.”
Trump made the controversial comments on Saturday, accusing Panama of imposing “exorbitant prices” on American vessels and demanding that the fees be lowered. He suggested that failure to comply could lead to a reclamation of the canal, which was under U.S. control until it was transferred to Panama in 1999.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Trump said. “This complete ‘rip-off’ of our country will immediately stop.”
Mulino countered, explaining that the tolls for using the canal are determined transparently. “The rates to use the canal were established publicly and in an open hearing, considering market conditions, international competition, operating costs and the maintenance and modernization needs of the interoceanic route,” he said.
Trump also alleged Chinese involvement in the management of the canal. Mulino dismissed the claim without directly naming Trump, stating, “The canal is not under direct or indirect control, neither by China nor by the European community, by the United States or by any other power.”
Mulino emphasized Panama’s respect for other nations and its demand for mutual respect in return, expressing hope for a “respectful relationship” with the incoming U.S. administration. He pointed to pressing bilateral issues, including illegal migration, drug trafficking, terrorism, and organized crime, as areas where collaboration should take precedence.
Colombian President Gustavo Petro expressed solidarity with Panama, vowing to defend the Central American nation’s sovereignty. “I will be on the side of Panama and the defense of its sovereignty until the last consequences,” Petro wrote on X.
The canal, completed by the U.S. in 1914, was returned to Panama as part of a 1977 agreement signed by U.S. President Jimmy Carter. Panama regained full control of the vital commercial passage on Dec. 31, 1999.
“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,” Petro added.