Last Sunday, US President-elect Donald Trump announced that his administration would pursue efforts to regain control of the Panama Canal, sparking immediate backlash from Panamanian President Jose Raul Mulino. Speaking at AmericaFest, an event organized by the conservative group Turning Point, Trump criticized the US’s decision to hand over the canal to Panama, claiming it was a “foolish” move and accusing Panama of imposing unfair tolls on its use.
Trump’s remarks included a warning about potential foreign influence, suggesting that the canal could fall into the “wrong hands.” While he did not name specific countries during his speech, he later implied on Truth Social that China posed a threat to the canal’s management. In response, Mulino issued a rebuttal, reaffirming Panama’s sovereignty over the canal and rejecting Trump’s claims of foreign interference. He emphasized that every aspect of the canal, including its administration and surrounding territory, is firmly under Panama’s control.
Although China does not control the Panama Canal, a Hong Kong-based corporation, CK Hutchison Holdings, has operated ports at both ends of the waterway since 1997. This arrangement has fueled concerns in some US circles about Chinese influence in the region. Mulino dismissed these fears in a public statement, clarifying that Panama alone determines canal operations and tolls, which are based on economic and operational needs.
The Panama Canal is one of the world’s most important trade routes, facilitating the transit of 2.5% of global maritime trade. Built with significant US investment and engineering expertise, the canal opened in 1914 and remained under US control for decades. The 1977 Torrijos-Carter Treaties initiated a gradual transfer of authority, with Panama taking full control in 1999. Today, the canal is vital for global commerce, especially for shipping goods between Asia and the Americas.
Trump’s statements highlight his administration’s potential to challenge existing international agreements, raising questions about the future of US-Panama relations. While his rhetoric may appeal to his supporters, those holding opposite beliefs think it risks destabilizing an essential diplomatic relationship and creating unnecessary tension in the region. An attempt to revisit the canal’s ownership would face significant legal and geopolitical obstacles. As the debate continues, the implications of these remarks regarding trade, diplomacy and regional stability will remain monitored at an international level.
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