U.S. President-elect Donald Trump's controversial remarks about reclaiming the Panama Canal ignited a diplomatic confrontation with Panamanian leadership.
According to Latin Times, Panama's President Jose Raul Mulino has firmly rejected any possibility of reducing Panama Canal tolls following Trump's threats to seize control of the vital waterway.
The dispute emerged after Trump criticized the United States' previous decision to relinquish control of the Panama Canal. His statements at Turning Point USA's AmericaFest in Arizona suggested that if certain principles were not upheld, he would demand the return of the canal to U.S. control. These comments have triggered significant diplomatic tension between the two nations.
President Mulino emphasized that toll adjustments follow a structured process beyond presidential authority. The canal's toll system operates through public hearings and transparent procedures, ensuring fair consideration of all stakeholders' interests.
This systematic approach has previously demonstrated its effectiveness when one nation successfully negotiated against a proposed price increase.
The Panama Canal's current challenges stem from severe drought conditions in 2023, which significantly impacted water levels in the canal's reservoir system. These environmental constraints have forced authorities to reduce daily crossings and implement higher fees for ships requesting passage slots.
The historical context of the canal adds another layer to the current controversy. The United States completed the canal's construction in the early 1900s to facilitate maritime travel between its coastal regions. The transfer of control to Panama occurred on December 31, 1999, following the 1977 treaty signed during Jimmy Carter's presidency.
Trump's comments have catalyzed significant public protests in Panama, with demonstrators gathering outside the U.S. Embassy to voice their opposition. The protests have featured strong anti-American sentiment, with some participants burning the U.S. flag and images of the former president. These actions reflect the depth of public anger over perceived threats to national sovereignty.
Protesters expressed their resistance through various slogans and demonstrations. The intensity of public reaction demonstrates the canal's significance to Panama's national identity and economic independence. The demonstrations have evolved into a broader statement about territorial sovereignty and resistance to foreign intervention.
Panama's successful management of the canal since its transfer includes overseeing a $5.2 billion expansion project completed in 2016. This achievement stands as a testament to Panama's capability to independently operate and develop the crucial maritime passage.
President Mulino stated:
No, the answer is no. Tolls are not set at the whim of the (Panamanian) president and the administrator but through a public and open process.
Trump's provocative statement at the Arizona event declared:
We're being ripped off at the Panama Canal. If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to the United States of America, in full, quickly and without question.
The ongoing dispute between Panama and former President Trump over control of the Panama Canal has escalated into a significant diplomatic incident. Panama's President Mulino's firm rejection of toll adjustments comes in response to Trump's threats to reclaim the waterway, which prompted widespread protests outside the U.S. Embassy in Panama. The situation continues to develop as Panama maintains its stance on sovereign control over the canal while managing operational challenges caused by environmental factors.
