Panama rejects Trump's threat to take control of Canal

Panama's president Jose Raul Mulino on Sunday 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 meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama," Mulino said in a video posted to X.

Mulino's public comments, though never mentioning 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.

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," Trump said. "We would and will NEVER let it fall into the wrong hands!"

The 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.

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."

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

Later on Sunday, Trump responded to Mulino's dismissal, writing on Truth Social: "We'll see about that!"