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Panama's Leader Dismisses Trump's Canal Proposal

 January 21, 2025

President Donald Trump's inaugural address stirred international reactions with his unexpected suggestion to reclaim U.S. control over the Panama Canal, prompting a swift and firm rejection from Panama’s president, Jose Mulino.

Approximately one hour after Trump's inaugural speech, Mulino publicly opposed the idea of any potential U.S. sovereignty over the Panama Canal, affirming his country's sole jurisdiction, as the Daily Wire reports.

On the day of Trump's inauguration as the 47th president of the United States, he addressed several issues, including a proposal to restore the name of Mount McKinley and revisiting the ownership of the Panama Canal. These remarks prompted immediate feedback from Panama's leadership.

Panama's Swift Reaction to Trump's Remarks

In his inaugural address, Trump highlighted the historical significance and cost of the Panama Canal, emphasizing the U.S.’s financial and human investment during its construction.

Trump claimed there was unfair treatment of American vessels and insinuated a violation of existing U.S.-Panama treaties related to the canal.

This assertion was met with strong opposition from Panama. Only an hour after Trump's speech, Mulino issued a statement, emphasizing that Panama retains full control of the canal.

He cited the Torrijos-Carter Treaty, an agreement negotiated by then-President Jimmy Carter, which outlines Panama's management of the canal since 1999 as a result of historical efforts.

Reaffirming Panama's Sovereign Control

President Mulino's statement was unambiguous as he stressed Panama's determination to safeguard the canal from foreign interference. He reiterated that canal management has been responsibly maintained since the treaty's enactment.

Mulino further highlighted that the canal's operations and expansions have continued smoothly over the past 25 years. He declared there was no room for external influence, underscoring Panama’s commitment to its neutral and efficient administration.

The mention of the Panama Canal treaty draws attention to a crucial moment in U.S.-Panama relations. The agreement, which took effect in 1979, eventually led to the complete transfer of canal control to Panama in 1999, a significant shift from its original ownership by the United States.

Historical Context of Canal's Ownership

Trump referenced President William McKinley's legacy, linking it to prior prosperity and the canal's history. His comments about considering a reclamation of the canal hark back to a period when the United States held sway over the strategic waterway.

However, Panama's current administration asserts its authority both practically and symbolically. Mulino urged the respect of Panama's historical struggles and triumph in attaining sovereignty over the canal, achieved through the landmark Torrijos-Carter treaty.

Dissecting the Treaty and Its Implications

The treaty, signed and ratified in the late 1970s, was a pivotal agreement that established the framework for the gradual transfer of the canal's control from the U.S. to Panama. This process was completed in 1999, marking a new chapter in Panama's administration of the canal.

Trump's proposal to revisit canal sovereignty brought these historical dynamics back into public discourse, prompting a detailed response from Mulino. The Panamanian leader was unequivocal in defending the country’s achievements and maintaining its control over one of the world's critical transit routes.

Analyzing Impact on U.S.-Panama Relations

Trump's inauguration day comments not only attracted swift commentary from Panama but also signaled potential shifts in international relationships under the new U.S. administration.

His statements about the canal and Mount McKinley exemplified a broader theme of revisiting established policies.

The strong stance by Mulino serves as an assertion of Panama's independence and the fulfillment of its goals in managing the canal effectively. This public exchange highlights the sensitive nature of international dialogues concerning sovereignty and historical agreements.

In summary, Trump's proposal about the Panama Canal was swiftly countered by Mulino, who reiterated that Panama has maintained its control through a treaty that Parliament leaders consider a monumental diplomatic success. The discourse illustrates the ongoing importance of historical treaties and geopolitical strategies in contemporary international relations.