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Panama president reaffirms sovereignty over canal after Trump threats

  • By Al Mayadeen English
  • Source: Agencies
  • 23 Dec 2024 10:01
4 Min Read

Panama President Jose Raul Mulino reaffirms Panama's full control over the canal, rejecting US President-elect Donald Trump's threats to reclaim it due to high passage fees and concerns about Chinese influence.

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  • A cargo ship traverses the Agua Clara Locks of the Panama Canal in Colon, Panama, Sept. 2, 2024. (AP)
    A cargo ship traverses the Agua Clara Locks of the Panama Canal in Colon, Panama on September 2, 2024. (AP)

"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," President Jose Raul Mulino said in a statement on Monday, responding to US President-elect Donald Trump about his intention to return the canal to US ownership citing concerns over high passage rates.

Mulino stated that Panama fully owns the Panama Canal under a 1977 treaty, stressing that the country's sovereignty is not up for debate.

"The Torrijos-Carter Treaties of 1977 agreed on the dissolution of the former Canal Zone, recognizing Panamanian sovereignty and the full transfer of the Canal to Panama, which was completed on December 31, 1999, and we will soon celebrate the 25th anniversary of this transfer," he said.

Mulino emphasized that the canal's rates are not arbitrary, as they are set transparently, considering market conditions, international competition, operating costs, and the need for ongoing maintenance and modernization of the waterway.

He also highlighted that the expansion of the Canal in 2016 was a result of this approach, and reiterated that no external powers, including China, the European Union, or the United States, have any control—direct or indirect—over the canal.

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While the president expressed a desire to maintain good and respectful relations with the incoming US administration, he made it clear that when it comes to the Panama Canal and the country's sovereignty, all Panamanians stand united under the flag of Panama.

Trump threatens to take control of Panama Canal

US President-elect Donald Trump slammed on Saturday what he called unfair fees for US ships passing through the Panama Canal and threatened to demand Washington gain control over the waterway.

Trump also shed light on what he described as China's growing influence around the canal, which he considers a threat to US interests since US businesses depend on the channel to transfer goods between the Atlantic and Pacific oceans.
 
On his Truth Social platform, Trump said, "Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous," adding, "This complete 'rip-off' of our Country will immediately stop."

It is worth noting that the Panama Canal, completed by the United States in 1914, was returned to Panama through a 1977 agreement signed by US President Jimmy Carter, and in 1999, Panama took full control of the canal.

Trump said, "It was solely for Panama to manage, not China, or anyone else," adding, "We would and will NEVER let it fall into the wrong hands!" 

The president-elect expressed his concerns over Panama's handling of the Panama Canal, in terms of what he described as "the secure, efficient and reliable operation" of the channel, warning that he would feel obliged to "demand that the Panama Canal be returned to us, in full, and without question." 
 
It is important to highlight that approximately five percent of global maritime traffic passes through the Panama Canal, enabling ships traveling between Asia and the US East Coast to bypass the lengthy and perilous route around the southern tip of South America.
 
That said, the main users of the passage are the United States, China, Japan, and South Korea. 
 
The Panama Canal Authority reported in October that the waterway had earned record revenues of nearly $5 billion in the last fiscal year.

Read more: Cuban president, demonstrators march in front of US embassy in Havana

  • Panama
  • Panama canal
  • US President Donald Trump
  • Jose Raul Mulino
  • Panama President

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