Trump Threatens to Take Back Panama Canal

The president of Panama, Jose Raul Mulino, responded to the controversial declarations of the President-elect Donald Trump, in which he claimed that his country was “swindle[d]” with the current state of the Panama Canal. Trump has demanded that Panama reduce its “exorbitant prices” for American shipping and naval vessels using the Canal, or turn it over to U.S. control.

In response, the Panamanian president replied that “every square meter of the Panama Canal and its adjacent area belongs to Panama and will continue to belong to Panama.” Mulino emphasized that the country’s sovereignty and independence was non-negotiable. “Every Panamanian, here or anywhere in the world, carries it in his heart and is part of our history of struggle and an irreversible conquest”.

Controversy between Panama and US over use of Panama Canal

Over the weekend, Trump made comments about the Panama Canal to supporters of Turning Point USA, a conservative activist group that provided significant support to his 2024 election campaign.

Trump called increased prices for American vessels at the Canal a “swindle” and threatened that the Panama Canal – a piece of aquatic infrastructure that connects the Atlantic Ocean with the Pacific – be “returned” to the United States. Trump claimed that rates charged by Panama are “extremely unfair” and do not take into account the “extraordinary generosity” that the U.S. demonstrated when it “foolishly” ceded the management of the canal. Washington relinquished control of the waterway to Panama in December 1999 under a treaty signed in 1977 by President President Jimmy Carter (1977-1981).

“If the principles, both moral and legal, of this magnanimous gesture of generosity are not respected, we will demand that the Panama Canal be returned to the United States,” Trump said. “Therefore, officials of Panama, I ask you to be guided accordingly,” he warned.

Trump also claimed that there is “Chinese interference in the management of the canal,” through which 3% of world trade passes.

Related: Panama to End Silk Road Agreement with China

Panama reaffirms its sovereignty over the canal

Panamanian President, Jose Raul Mulino, was quick to respond to Trump’s statements, demonstrating the sensitivity of the issue for the Central American country, whose main source of income is the canal.

“As president, I want to express precisely that every square meter of the Panama Canal and its adjacent area belongs to Panama and will continue to belong to Panama: the sovereignty and independence of our country are not negotiable,” the Panamanian president said.

Mulino also referenced that the 1977 Torrijos-Carter Agreements, which dissolved U.S. control over the Canal region, recognized Panama’s sovereignty and conceded to the total cession of the Canal to Panama. These agreements were in effect on December 31, 1999, when the Canal was handed over to Panama.

“[The Panama Canal] has been a source of strong international support and national pride,” Mulino said, reflecting on the growth of the canal and its presence today as an enormous resource that contributes billions annually to the Panamanian economy.

Colombia defends Panamanian sovereignty over Panama Canal

Meanwhile, in Colombia, both the current president, Gustavo Petro, as well as former presidents and politicians from different parties defended Panamanian sovereignty over the Canal. “If the new U.S. government wants to talk business, we will talk business, face to face, and for the benefit of our peoples, but dignity will never be negotiated,” Petro wrote on social media.

“If it seems costly to pay to pass the Panama Canal into the hands of Panamanians, it will be much more costly to plunge Panama, South America, Central America or Mexico into poverty. If they do not want us in the United States, we must make all the Americas prosperous in independence, freedom and democratic dignity,” he continued.

Former Colombian presidents Ernesto Samper (1994-1998, liberal), and Andres Pastrana (1998-2002, conservative) maintained the same line and positioned themselves against Trump’s comments.

“Colombia has the moral and historical authority to oppose President Trump’s threat to retake the Panama Canal if the government of that country does not meet his confusing demands. The neutrality of the Canal, for which the entire region fought, is in the interest of the whole world,” said Samper.

Former President Pastrana also assured that “Panama’s rights over the Canal are indisputable, [and are] protected by international law.”

The Canal and its relationship with the United States

The Panama Canal, one of the most important engineering achievements in the world, represents a milestone in the connection of the Atlantic and Pacific oceans. Its construction began under the direction of France in 1880, led by Ferdinand de Lesseps, but the project faced serious financial, technical and health problems, such as outbreaks of malaria and yellow fever.

In 1904, the U.S. resumed work on the canal after an agreement with Panama, which had just achieved its independence from Colombia in 1903, supported by the Americans, who were interested in influencing the infrastructure. The canal was inaugurated in 1914, consolidating it as a key route for world trade.

Although the canal boosted Panama’s economic development, U.S. control generated national tensions. In 1977, the Torrijos-Carter Treaties marked a turning point, guaranteeing the return of the canal to Panama on December 31, 1999. This agreement symbolized an act of sovereignty for the Panamanians, who assumed full control.

Since then, the canal has been an engine of economic growth and national pride, modernizing with projects such as the expansion inaugurated in 2016, which allowed the passage of larger vessels.