Panama has firmly rejected any suggestion that the Panama Canal could revert to United States control, following comments by US President-elect Donald Trump about the high fees charged for its use. President José Raúl Mulino responded unequivocally in a statement on Monday, declaring, “Every square meter of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be. The sovereignty and independence of our country are not negotiable.”
Mulino underscored that Panama has full ownership of the canal under the Torrijos-Carter Treaties signed in 1977, which dissolved the former US-controlled Canal Zone and officially transferred the canal to Panama on December 31, 1999. “We will soon celebrate the 25th anniversary of this transfer,” he noted, calling it a testament to Panama’s unassailable sovereignty. The treaties, a landmark in US-Panama relations, represented a recognition of Panamanian self-determination after decades of foreign oversight of the waterway.
Trump, speaking on his Truth Social platform, had criticised Panama’s management of the canal, calling the fees charged to US ships “ridiculous” and claiming they amounted to a “complete rip-off.” He expressed dissatisfaction with what he described as Panama’s “secure, efficient and reliable operation” of the channel and threatened to demand its return to US ownership. Highlighting concerns over China’s influence around the canal, Trump framed the issue as one of American economic security, stating, “We would and will NEVER let it fall into the wrong hands!”
Mulino, however, dismissed these claims and stressed that the canal’s toll structure is transparent and fair, based on market conditions, operational costs, international competition, and the necessity of ongoing maintenance and modernization. He pointed to the successful expansion of the canal in 2016 as a result of this strategic approach, emphasizing that no external powers—be they China, the European Union, or the United States—have any control over the waterway.
The Panama Canal remains one of the world’s most critical maritime passages, accounting for approximately five percent of global shipping traffic. It facilitates the movement of goods between the Atlantic and Pacific oceans, with the United States, China, Japan, and South Korea as its primary users. In October, the Panama Canal Authority reported record revenues of nearly $5 billion in the past fiscal year, underscoring its strategic and economic importance.
President Mulino expressed hope for respectful relations with the incoming US administration but made it clear that Panama stands united in its resolve to defend its sovereignty. “When it comes to the Panama Canal and the country’s sovereignty, all Panamanians stand united under the flag of Panama,” he stated.
