Panama’s President Declines Trump’s Proposal to Reclaim Panama Canal

Just an hour into his presidency, Donald Trump reignited an international debate by suggesting the United States reclaim sovereignty over the Panama Canal. In his inaugural address, Trump criticized the 1977 treaty transferring control of the canal to Panama, calling the move a “foolish gift” that had been exploited by foreign powers, including China.

“We’re taking it back,” Trump declared, emphasizing the sacrifices made by Americans during the canal’s construction, which claimed 38,000 lives and cost more money than any project in U.S. history.

However, President Jose Mulino of Panama swiftly rejected Trump’s statement. Mulino took to X (formerly Twitter) to issue a firm response:

“The Canal is and will continue to be Panama’s, and its administration will remain under Panamanian control with respect to its permanent neutrality.”

Trump’s remarks highlighted longstanding frustrations among some Americans regarding the Panama Canal treaties. The 1977 Torrijos-Carter Treaty, signed by then-President Jimmy Carter, transferred control of the canal to Panama in 1999, ending nearly a century of U.S. management. The treaty, highly controversial at the time, was seen by many as a concession of critical strategic and economic importance.

In his speech, Trump accused Panama of breaking its promises under the treaty, alleging that American ships, including Navy vessels, are “severely overcharged and not treated fairly.” He also raised concerns about China’s growing influence over the canal, claiming that “we didn’t give it to China; we gave it to Panama.”

Mulino rejected Trump’s accusations, asserting that Panama has upheld its obligations under the Torrijos-Carter Treaty and expanded the canal responsibly.

“The Canal was not a concession from anyone,” Mulino said, emphasizing that its transfer was the result of “generational struggles.” He defended Panama’s sovereignty and neutrality, arguing that international law and mutual respect should guide relations between allied nations.

Trump’s comments mark a significant departure from the cooperative tone traditionally taken by U.S. presidents regarding the Panama Canal. The remarks have sparked concerns about a potential strain in U.S.-Panama relations, with Mulino urging dialogue to clarify the situation without undermining his nation’s rights.

The Panama Canal remains a critical artery of global commerce, facilitating nearly 14,000 transits annually. While it has served U.S. economic and military interests for decades, the question of sovereignty over the canal has long been a sensitive issue for Panama, which views the canal as a symbol of national pride and independence.

As Trump begins his second term, his administration’s approach to international treaties and partnerships appears poised for a shakeup.

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