"Less than 1㎡"... Panama Reacts to Trump's 'Canal Reclamation' Warning

Panama President Murino: "No Compromise on Territorial Sovereignty"

Amid warnings from U.S. President-elect Donald Trump about reclaiming control of the Panama Canal, Panama's political circles have strongly opposed the remarks. Attention is focused on whether Trump's America First stance will escalate into a diplomatic issue as it targets Panama, a traditionally pro-American country.

Panamanian President Jos? Ra?l Mulino stated in a national address video posted on X (formerly Twitter) on the 22nd (local time), "The Panama Canal and its adjacent areas are the exclusive property of the Panamanian people," adding, "Not even one square meter can be conceded." He continued, "Domestic territorial sovereignty is a matter that can never be compromised," emphasizing, "The canal is an asset managed with complete autonomy by the authorities, with a mission to operate it neutrally and openly."

AFP Yonhap News

This is the official position announced by the Panamanian government in response to President-elect Trump's threat to reclaim control of the Panama Canal. Earlier, Trump criticized on his social media platform Truth Social that "Panama is charging excessive canal tolls to the U.S. Navy and companies," and during a political event speech in Arizona on the same day, he said, "If the principle of generous donation is not upheld, I will demand that the Panama Canal be returned to the United States completely and unconditionally."

The United States, which led the construction of the Panama Canal until its completion in 1914, relinquished control of the canal under a treaty signed by then-President Jimmy Carter in 1977. The Panama Canal, known to handle 3-4% of global maritime trade, can accommodate up to 14,000 vessels annually. For the 2024 fiscal year (October 2023 to September 2024), U.S.-flagged ships transported 157.06 million tons of cargo through the canal, ranking first worldwide by a wide margin. As the U.S. burden for canal tolls increased, President-elect Trump applied pressure.

Trump's threat provoked a strong reaction from Panama's political sphere. The Democratic Revolutionary Party (PRD), Panama's largest center-left opposition party, stated on X that "The Panama Canal was not given to us; it is a place we reclaimed and expanded," while the largest bloc in the Panamanian National Assembly, the Independent Union, condemned it as "an insult to our people's memory and struggle." Local media reported that other lawmakers also expressed the need to raise their voices regarding autonomy as an independent nation.

AP Yonhap News

Panama is one of the traditional allies pursuing a pro-American line aimed at establishing an equal relationship with the United States. Especially, President Mulino, who took office in July, has been actively cooperating with the U.S. government to curb the migrant caravans through the Dari?n Gap. The Dari?n Gap is a tropical rainforest located at the border area between northern Colombia in South America and southern Panama in Central America, where hundreds of thousands of illegal migrants cross annually despite the harsh terrain, aiming to reach the U.S. and Mexico.

President-elect Trump's remarks are also interpreted as an attempt to counter China. Trump said, "I will not allow the Panama Canal to fall into the wrong hands," which major foreign media analyze as a warning against China's expanding influence. According to Bloomberg News, Panama severed diplomatic relations with Taiwan in 2017 and declared "There is only one China." Currently, China does not have direct influence over the Panama Canal, but Hong Kong-based company CK Hutchison is known to be investing in the Panama Canal area.