Trump declares “regaining control” of the Panama Canal – Panama reacts sharply

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A diplomatic scandal has erupted in Panama following US President Donald Trump’s statement about the alleged restoration of US control over the Panama Canal. According to Barron’s, Panamanian President Jose Raul Mulino categorically denied the allegations, saying they were “lies” and an encroachment on the country’s sovereignty.

“I reject, on behalf of Panama and all Panamanians, this new attack on the truth and our dignity as a nation,” Mulino said on social media site X.

During his speech to Congress, Donald Trump said: “To enhance our national security, my administration has begun to regain control of the Panama Canal. We have already begun to do so”. These words caused a wave of indignation in Panama, which has been operating the canal since 1999 through an autonomous state structure.

The Panama Canal is a strategic waterway that accounts for 5% of global sea trade and 40% of US container traffic. In his statements, Trump linked the need to “regain control” to the growing influence of China, which, according to him, is actively present in the region. At the same time, China has repeatedly denied any interference with the canal.

Diplomatic tensions were exacerbated by the news of the sale of a 90% stake in Panama Ports Company to a consortium led by US investment manager BlackRock for $19 billion, which only added fuel to the fire.

Panama has already filed a formal complaint with the UN, considering Trump’s statements a threat to its sovereignty.

This situation demonstrates a further deterioration in relations between Washington and Panama, and underscores Panama’s readiness to resolutely defend its independence against any external claims.