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Panama rejects Trump's threat to take control of canal

Two cargo ships pass each other during their entry and exit to the Panama Canal at the Pacific Ocean near Panama City
Two cargo ships pass each other during their entry and exit to the Panama Canal at the Pacific Ocean near Panama City

Panama's president José Raúl Mulino has dismissed recent threats made by US president-elect Donald Trump to retake control of the Panama Canal over complaints of "unfair" treatment of American ships.

"Every square metre of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama," Mr Mulino said in a video posted to X.

Mr Mulino's public comments, though never mentioning Mr Trump by name, come a day after the president-elect complained about the canal on his Truth Social platform.

"Our navy and commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous," he said.

Mr Trump also complained of China's growing influence around the canal, a worrying trend for American interests as US businesses depend on the channel to move goods between the Atlantic and Pacific oceans.

"It was solely for Panama to manage, not China, or anyone else," Mr Trump said.

"We would and will never let it fall into the wrong hands," he added.

Mr Mulino said the 'canal has no direct or indirect control from China' or the EU or US

What is the Panama Canal and why has Trump threatened to take it over?


vThe Panama Canal, which was completed by the United States in 1914, was returned to the Central American country under a 1977 deal signed by Democratic president Jimmy Carter.

Panama took full control in 1999.

Mr Trump said that if Panama could not ensure "the secure, efficient and reliable operation" of the channel, "then we will demand that the Panama Canal be returned to us, in full, and without question".

Mr Mulino rejected Mr Trump's claims in his video message, though he also said he hopes to have "a good and respectful relationship" with the incoming administration.

"The canal has no direct or indirect control from China, nor the European Union, nor the United States or any other power," Mr Mulino said.

"As a Panamanian, I reject any manifestation that misrepresents this reality," he said.

Later, Mr Trump responded to Mr Mulino, writing on Truth Social: "We'll see about that."

Mexican president says Panama Canal belongs to Panamanians

Meanwhile, Mexican President Claudia Sheinbaum has expressed support for Panama's government saying that the canal belongs to Panamanians.

"Indeed, the Panama Canal belongs to the Panamanians," Ms Sheinbaum said, speaking in her regular morning press conference.

Separately, Greenland's Prime Minister Múte Egede said the island is not for sale in response to comments made by Mr Trump regarding the "ownership and control" of the Arctic island that has been part of Denmark for over 600 years.

During his previous term in office, Mr Trump in 2019 expressed interest in buying Greenland, but the proposal was promptly rejected by Denmark as well as by the island's own authorities before any formal discussions could take place.