Panamanian President Jose Raul Mulino has asserted that the Panama Canal belongs to his country, dismissing President-elect Donald Trump’s earlier threats to reclaim its management.

“Every square meter of the Panama Canal and its surrounding areas belongs to Panama and will remain ours,” President Mulino declared in a video posted on social media platform X on December 22.

Mulino emphasized that the Panama Canal is not under the direct or indirect control of China, the European Union, the United States, or any other entity. “As a Panamanian, I reject any attempt to distort this reality,” he said, adding that he still hopes for “good and respectful relations” with the incoming U.S. administration.

The Panamanian president’s remarks came a day after President-elect Trump criticized Panama’s handling of the canal on Truth Social.

“The U.S. Navy and American commercial vessels have been treated unfairly. The fees Panama is charging are outrageous,” Trump stated.

He also expressed concern about China’s growing influence in the Panama Canal region, calling it a worrisome trend for U.S. interests as American businesses rely heavily on the canal for shipping goods between the Atlantic and Pacific Oceans.

Trump declared that if Panama cannot ensure the “safe, efficient, and reliable” operation of the canal, the U.S. would demand that Panama “return the Panama Canal to us entirely, no questions asked.”

The U.S. was the primary builder of the Panama Canal and managed the surrounding territory for decades. The U.S. government transferred full control of the canal to Panama in 1999 after a period of joint management.

The 82-kilometer-long Panama Canal connects the Pacific and Atlantic Oceans, significantly shortening the journey between the two regions and eliminating the need for ships to navigate the lengthy and hazardous route around South America’s southern tip. The canal handles 14,000 vessels annually, accounting for 2.5% of global maritime trade.

(Sources: AFP, Reuters)