A bitter dispute is brewing between Panama and the United States over control of the Panama Canal, as the small Central American nation’s president vows to resist threats and demands from US President-elect Donald Trump.
In a defiant press conference on Thursday, Panamanian President José Raúl Mulino declared “there’s nothing to talk about” in response to Trump’s calls to renegotiate the landmark treaty that handed the canal back to Panama in 1999. Mulino firmly rejected any possibility of discussing the waterway’s control or reducing its transit tolls for American ships.
The canal is Panamanian and belongs to Panamanians. There’s no possibility of opening any kind of conversation around this reality, which has cost the country blood, sweat and tears.
– José Raúl Mulino, President of Panama
Trump’s Incendiary Demands
The spat erupted after the US president-elect lashed out at the “ridiculous” fees charged to American vessels passing through the canal. In a series of posts on his Truth Social platform, Trump hinted darkly at growing Chinese influence over the strategic passage.
- “It was solely for Panama to manage, not China, or anyone else,” Trump thundered. “We would and will NEVER let it fall into the wrong hands!”
The incoming US leader threatened that if Panama could not ensure the canal’s “secure, efficient and reliable operation,” then “we will demand that the Panama Canal be returned to us, in full, and without question.” His nominee for ambassador to Panama, Kevin Marino Cabrera, is known as a fierce “America First” proponent.
Panama Pushes Back
President Mulino, however, was quick to dismiss these provocations. He emphasized that the canal’s usage fees are not set arbitrarily but through an established “public and open process.” Crucially, he absolutely denied Trump’s allegations of Chinese interference.
There is absolutely no Chinese interference or participation in anything to do with the Panama Canal… There are no Chinese soldiers in the canal, for the love of God.
– José Raúl Mulino, President of Panama
The Panamanian leader’s strong stance reflects his nation’s determination to protect its sovereignty over a waterway that is both a source of patriotic pride and a vital economic lifeline. An estimated 5% of global maritime trade passes through the canal, with the US and China as its top users.
A Century of Struggle
Control of the Panama Canal has long been a sensitive issue, intertwined with Panama’s fight for self-determination. The US built and operated the canal for most of the 20th century, often against the wishes of the Panamanian people.
- In the 1970s, Panamanian leader Omar Torrijos successfully negotiated the Torrijos-Carter Treaties to transfer the waterway to Panama by the year 2000 – a historic victory that cost him his life.
- The handover on December 31, 1999 marked a new era of Panamanian control, but evidently one that Trump now seeks to reverse.
As a small country caught between two superpowers, Panama is well aware of the high stakes involved. Its leaders and people have consistently fought to assert their sovereign rights and resist foreign pressure, whether from the US or other powers.
The Road Ahead
As Trump prepares to enter the White House, the stage seems set for a contentious diplomatic showdown over the canal. Much may depend on whether his fiery rhetoric translates into actual policy.
For now, President Mulino and the Panamanian people remain steadfast. In the streets of Panama City, protesters have rallied outside the US embassy, burning effigies of Trump and chanting “Trump, animal, leave the canal alone.” Their message is clear – the canal is not for sale, and Panama will not relinquish it without a fight.
As the US and Panama navigate these choppy geopolitical waters, the world will be watching to see whether the Panama Canal emerges as a new flashpoint in the global tug-of-war between ascendant China and Trump’s “America First” vision. For a small nation with a big canal, nothing less than its destiny is at stake.
