Panama has formally complained to the United Nations following US President Donald Trump’s alarming comments about potentially seizing the Panama Canal. In a letter addressed to UN Secretary-General Antonio Guterres, the Panamanian government expressed concern over Trump’s remarks and invoked a key article of the UN Charter that prohibits any member state from threatening or using force against another’s territorial integrity or political independence.
The letter, which was distributed to reporters on Tuesday, calls for the issue to be brought before the UN Security Council, though it stops short of requesting a formal meeting on the matter.
In his inaugural address on Monday, Trump reiterated his long-standing criticism of China’s growing influence over the Panama Canal, a strategic waterway that the US relinquished to Panama in 1999. “We didn’t give it to China, we gave it to Panama. And we’re taking it back,” Trump declared, signaling his displeasure over what he sees as China’s increasing involvement in the region.
In response, Panama’s President Jose Raul Mulino strongly rejected Trump’s remarks during a panel at the World Economic Forum in Davos, Switzerland. “We reject in its entirety everything that Mr. Trump has said,” Mulino stated. “First because it is false, and second because the Panama Canal belongs to Panama and will continue to belong to Panama.” The president emphasized that the canal is operated under a principle of neutrality, with no foreign interference.
China, for its part, has denied any interference in the canal’s operations. “China has always respected Panama’s sovereignty over the canal and recognized the canal as a permanent neutral international waterway,” said Chinese foreign ministry spokeswoman Mao Ning.
Audit of Canal Port Operator Amidst Rising Tensions
In parallel to diplomatic tensions, Panama has announced an audit of the Panama Ports Company, which operates two major ports at either end of the canal. The Panama Ports Company is a subsidiary of Hutchison Ports, a Hong Kong-based division of CK Hutchison Holdings. The audit, led by Panama’s comptroller’s office, aims to ensure that the company complies with its concession agreements and operates with full transparency, particularly concerning financial reporting.
The Panama Ports Company, which has been under scrutiny due to its links with Hong Kong, stated in a press release that it remains committed to transparency and cooperation with Panamanian authorities. “We continue to maintain a transparent and collaborative relationship with Panamanian authorities,” the company affirmed, noting that its financial results are audited by an independent external firm and shared annually with the Panamanian government.
The Panama Ports Company’s 25-year concession agreement was extended in 2021. The United States, which is the primary user of the canal, accounts for 40 percent of the waterway’s container traffic, followed by China.
Since the handover of the canal to Panama in 1999, it has contributed significantly to the country’s economy, generating more than $30 billion in revenue for the Panamanian government, including nearly $2.5 billion in the last fiscal year. Trump has previously hinted at the possibility of using military force to reclaim control over the canal, further intensifying concerns in Panama and among international stakeholders.
