In a dramatic exchange that has captured international attention, the President-elect Donald Trump has reignited tensions over the Panama Canal, a vital waterway that connects the Atlantic and Pacific Oceans.
Following his recent comments suggesting that the U.S. could reclaim control of the canal, Panamanian President José Raúl Mulino firmly asserted his country’s sovereignty, declaring that “every square meter” of the canal belongs to Panama and will remain so.
The Controversy Unfolds
The controversy erupted during Trump’s first major rally since his election victory, where he expressed dissatisfaction with what he termed “ridiculous” shipping fees imposed on U.S. vessels navigating the canal. “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else,” Trump declared to a cheering crowd at Turning Point USA's AmericaFest in Phoenix.
He emphasized that if the fees charged by Panama were not adjusted, he would demand that the canal be returned to U.S. control “in full, quickly and without question.”
This statement marks a significant escalation in rhetoric surrounding U.S-Panama relations, especially considering that control of the canal was transferred to Panama in 1999 under a treaty signed by President Jimmy Carter in 1977. The treaty ended nearly a century of U.S. governance over the canal, which had been instrumental in global shipping since its opening in 1914.
Mulino’s Response
In a video response, President Mulino rejected Trump’s assertions, emphasizing that Panama's sovereignty is “non-negotiable.” He stated, “The sovereignty and independence of our country is non-negotiable,” reinforcing that the canal is an integral part of Panamanian identity and history. Mulino also addressed Trump’s complaints about shipping fees, clarifying that these charges are determined by experts based on operational costs and market conditions, not arbitrary decisions.
Mulino's government has pledged to deepen ties with the United States while maintaining its autonomy over the canal. He highlighted that Panama has expanded the canal over the years to accommodate increased ship traffic, demonstrating a commitment to improving infrastructure for all users.
The Broader Implications
Trump's comments have raised eyebrows not only for their implications regarding Panama sovereignty but also for their potential impact on U.S.-Latin American relations. His insinuations about China gaining influence over the canal have further complicated matters, as previous Panamanian governments had courted Chinese investment for infrastructure projects.
While Trump’s administration may seek to leverage historical ties and economic interests in negotiations with Panama, Mulino’s firm stance underscores a growing trend among Latin American nations asserting their sovereignty against perceived external pressures.
The Bottom Line: A Diplomatic Crossroads
As discussions continue between Washington and Panama City, it is clear that both nations face a diplomatic crossroads. The future of the Panama Canal—and by extension, U.S.-Panama relations—hangs in the balance as both leaders navigate their respective political landscapes.
In this evolving narrative, one thing remains certain: the dialogue surrounding the canal will not only shape bilateral relations but also reflect broader themes of sovereignty, economic fairness, and international cooperation in an increasingly interconnected world.