Stated by Panama’s president, the bilateral relationships between the U.S. and Panama have been repaired after a year.
In the message on the traditional New Year delivered to the National Assembly on the 2nd of January, Panama’s president José Raúl Mulino stated that the crisis with the United States has stopped. The two countries have repaired bilateral relationships with respect, trust, joint work, and friendship. In the fight against international crime, Panama is now actively cooperating with the U.S. Indeed, the sovereignty of the canal remained Panamanian.
The situation started back in 2024, when Donald Trump took office and put pressure against Panama. The President was arguing that Panama Ports Company (subsidiary of Hutchison Holdings), operates one port on the Pacific and one on the Atlantic, supposedly controlled by China, and threatened to take back control of the interoceanic canal.
The United States government inaugurated the canal in 1914. Under bilateral treaties, it was handed to Panama on the 31st of December, 1999. Both parties have agreed that all ships, in any case, will pay tolls according to the type of cargo and the vessel’s capacity. However, during 2025, the Republican caused alarm in Panama, going against the treaties, by repeatedly demanding all the ships to transit the canal without any fee.
According to Newsroom Panama, Washington and Panama approved contentious security accords that let U.S. forces conduct war drills on Panamanian soil for three years notwithstanding Trump’s threats. Additionally, although the deal has not yet been completed, Hutchison Holdings consented to sell the port facilities in the canal to a consortium headed by the American company BlackRock. Senior Panamanian officials have attacked the Hong Kong Company’s concession contract for the ports, which has been contested in court.
