President Jose Raul Mulino Issues Statement Following Trump Comment

The Panama Canal—a marvel of engineering, a cornerstone of global trade, and now, once again, the focal point of a geopolitical standoff. Over the weekend, President-elect Donald Trump made waves with bold remarks suggesting that the United States could reclaim control of the canal if Panama continued charging what he called “exorbitant” fees to American ships and the U.S. Navy. In response, Panamanian President José Raúl Mulino wasted no time firing back with a sharp, unyielding rebuttal.

“Every square meter of the Panama Canal and its adjacent area belong to Panama, and will continue to,” Mulino declared in a video statement. His tone left little room for negotiation. The canal, he asserted, is not just an economic artery—it’s a symbol of Panamanian sovereignty and national pride, a “history of struggle and irreversible conquest.”

Trump, never one to back down from a challenge, delivered his remarks with signature bravado at Turning Point USA’s AmericaFest conference. He painted a picture of Panama as an opportunistic gatekeeper, leveraging its control over the canal to exploit American commerce. “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else,” Trump said, addressing thousands of supporters in Arizona.

The history here is important. The United States built the Panama Canal in the early 20th century, pouring monumental resources, engineering ingenuity, and, yes, American lives into its creation. For decades, the canal served as both an economic lifeline and a strategic military advantage. But in 1977, President Jimmy Carter signed the Torrijos-Carter Treaties, setting the stage for the handover of the canal to Panama in 1999. It was a decision met with intense debate at the time, and it remains a contentious chapter in American foreign policy history.

For Trump, the issue isn’t just about fees—it’s about principle. He framed his argument around what he sees as a broken agreement. “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,” Trump said, his voice carrying the weight of a promise, or perhaps a threat.

Mulino, however, was quick to push back against any suggestion of bad faith on Panama’s part. He emphasized that canal fees are not arbitrary but are determined transparently, in public forums, and based on international market conditions and the immense cost of maintaining and modernizing the waterway.

The Panama Canal isn’t just a stretch of water—it’s one of the world’s most vital commercial lifelines. Every year, around 14,000 vessels traverse its locks, carrying cargo worth hundreds of billions of dollars. Its importance to U.S. commerce and military mobility cannot be overstated, and Trump knows that.

Yet, there’s a deeper layer to this standoff. Trump’s remarks aren’t just about economics—they’re about American strength and influence on the global stage. For Trump and many of his supporters, the canal represents something larger: a tangible symbol of American leadership, now in foreign hands, and perceived to be under foreign influence, particularly from China.

Mulino, for his part, struck a tone of defiance wrapped in diplomacy. He made it clear that while Panama values its relationship with the United States, its sovereignty over the canal is not up for discussion. “When it comes to our Canal and our sovereignty, we all unite under a single flag, that of Panama,” he said.

So where does this leave us? Trump’s parting words on Truth Social—“We’ll see about that!”—make one thing abundantly clear: this conversation is far from over. Trump has a knack for turning negotiation into high drama, and the Panama Canal may very well become one of his signature geopolitical chess pieces when he takes office.

Whether Trump’s remarks were a calculated opening move in a larger negotiation or a serious policy stance remains to be seen. But one thing is certain: the Panama Canal isn’t just a waterway—it’s a symbol. For Panama, it’s a badge of sovereignty and national pride. For Trump, it’s a reminder of American sacrifice, leadership, and a deal that, in his eyes, went sour.

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