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regular-article-logo Thursday, 09 January 2025

Canal sovereignty is 'non-negotiable', asserts Panama after Trump's remarks on taking control

After US President-elect Donald Trump repeated inaccurate claims that China controls the Panama Canal, Panama has again reaffirmed its sovereignty over the key Atlantic-Pacific waterway

Deutsche Welle Published 08.01.25, 11:32 AM
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The Panama Canal is a vital shipping route between the Atlantic Ocean and the Pacific Ocean. Agustin Herrera/AP Photo/picture alliance via Deutsche Welle

Panama reiterated on Tuesday that the sovereignty of its eponymous ship canal was not up for discussion after US President-elect Donald Trump refused to rule out military action to regain control.

"The sovereignty of our canal is not negotiable and is part of our history of struggle," Foreign Minister Javier Martinez-Acha said, adding that President Jose Raul Mulino had made his stance clear.

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Trump made the remarks during a rambling news conference held at his home in southern Florida, which was supposed to be about Emirati investment in US technology.

But the president-elect went off-track, repeating unsubstantiated claims that the Panama Canal — which was built by the United States in the early 20th century and handed over to Panama in part in 1977 and in full in 1999 — was now being operated by China.

"Look, the Panama Canal is vital to our country," Trump said. "It's being operated by China — China! — and we gave the Panama Canal to Panama, we didn't give it to China. They've abused that gift."

Martinez-Acha dismissed the claim, saying: "The only hands operating the canal are Panamanian and that is how it is going to stay."

Does China really control the Panama Canal?

Trump had made similar erroneous comments in December when he wished a Merry Christmas to the "wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal."

Panama's president described the claim as "nonsense," saying there was "absolutely no Chinese interference."

China is the second-largest user of the Panama Canal after the US, and is also a major investor in the Central American country, as it is in many parts of the world.

Two ports at the canal's entrances are managed by a subsidiary of Hong Kong-based CK Hutchison Holdings and Beijing has helped finance a new bridge over the waterway, but China does not own or control the canal, nor is there any evidence of Chinese military involvement.

Panama's President Jose Raul Mulino has also rebuked Trump's suggestions regarding the Panama Canal. (Image: Martin Bernetti /AFP/Getty Images via Deutsche Welle)

Is Panama 'ripping off' the United States?

Trump has also claimed that Panama is "ripping off" the United States with high shipping rates, prompting protests outside the US embassy.

According to shipping publication Lloyd's List, canal transit costs have indeed increased over the past year due to a historic drought, but not only for the US.

Construction of the Panama Canal was originally begun by France in the 1880s but was halted after the number of deaths among workers in the harsh conditions became untenable and the company managing the operation went bust. The United States acquired the project in 1904 and work was completed two years ahead of schedule in 1914.

The canal was officially handed over to Panama in 1977 by former US President Jimmy Carter, who passed away on December 29 and whose body was on Tuesday returned to Washington for a series of official funeral rites.

But that didn't stop Trump from telling reporters: "I liked him as a man. I disagreed with his policies. He thought giving away the Panama Canal was a good thing."

Trump's recent Panama Canal threats have been accompanied by additional belligerent and outlandish territorial claims against Canada, Greenland and Mexico.

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