Panama has strongly countered recent statements from U.S. President-elect Donald Trump, reiterating its firm stance that the sovereignty of the Panama Canal is “non-negotiable.” The response follows Trump’s repeated, baseless claims that China controls the canal, sparking backlash from Panamanian authorities.
Foreign Minister Javier Martinez-Acha emphasized on Tuesday, “The sovereignty of our canal is not negotiable and reflects our historic struggle.” He reaffirmed the position of President Jose Raul Mulino, who has consistently rejected any claims undermining Panama’s control over the vital waterway.
Trump made the controversial remarks during a Florida news conference originally intended to address Emirati investments in U.S. technology. Instead, he claimed, “The Panama Canal is vital to our country. It’s being operated by China — China! We gave the Panama Canal to Panama, not China, and they’ve abused that gift.”
Panama Rejects Trump’s Misstatements
Martinez-Acha quickly dismissed Trump’s assertions, stating, “The only hands operating the canal are Panamanian, and that will not change.” Panama assumed full control of the canal in 1999 under the terms of a treaty signed in 1977 by then-President Jimmy Carter.
While Trump alleged Chinese interference, experts clarified that China neither owns nor operates the canal. Although Hong Kong-based CK Hutchison Holdings manages two ports near the canal and China has financed infrastructure projects in Panama, no evidence suggests Chinese military involvement or operational control.
Panama’s president denounced Trump’s remarks as “nonsense,” assuring the world that canal operations remain entirely under Panamanian authority. “There is absolutely no Chinese interference in the canal’s management,” he stated firmly.
Economic Tensions and Misinformation
Trump’s accusations have heightened tensions, with protests occurring outside the U.S. embassy in Panama. The President-elect accused Panama of “ripping off” the U.S. with high shipping rates, but industry analysts attribute rising canal transit costs to a historic drought affecting shipping globally, rather than discriminatory policies against the United States.
China remains the second-largest user of the canal after the U.S. and has significant economic ties with Panama, including investments in a bridge over the canal. However, these partnerships do not equate to ownership or control, contrary to Trump’s assertions.
Historical Context of the Canal
The Panama Canal, a critical link between the Atlantic and Pacific Oceans, was completed by the United States in 1914 after initial French efforts failed in the 1880s. The canal’s eventual transfer to Panama symbolized a key moment in the nation’s history, securing its sovereignty over the strategic waterway.
Trump has frequently criticized the handover, reflecting on President Jimmy Carter, who oversaw the transfer. “I liked him as a man. I disagreed with his policies. He thought giving away the Panama Canal was a good thing,” Trump remarked following Carter’s recent passing.
Broader Diplomatic Fallout
The canal controversy is just one of several provocative claims made by Trump, including territorial and economic disputes involving Canada, Greenland, and Mexico. Panamanian officials have called on Trump to respect their sovereignty and avoid further spreading misinformation that could strain relations.
Despite these remarks, Panama remains resolute in its role as the sole operator of the canal, a symbol of national pride and an essential conduit for global trade. The country has made it clear that any attempts to challenge its authority over the canal will be firmly opposed.
As one of the world’s most critical maritime routes, the Panama Canal continues to be a testament to Panama’s independence and economic strength. Its future remains firmly in Panamanian hands, with leaders adamant about protecting its status as a cornerstone of their nation’s identity and global commerce.