Panama plays down Trump ‘invasion’ question, files UN complaint

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Panama's President Jose Raul Mulino dismissed concerns Wednesday in Davos, urging reporters to "be serious" when asked about the possibility of a U.S. invasion following President Donald Trump's statement about reclaiming the Panama Canal.

Mulino declined to answer other questions after speaking on a panel session addressing Latin America's "faultlines" at the World Economic Forum's annual meeting in the Swiss resort.

In his inauguration speech on Monday that invoked the 19th-century expansionist doctrine of "Manifest Destiny," Trump repeated his aspiration that the United States would take back the canal, which is a key route for world shipping.

Trump gave no further details on when or how he intended to reclaim the canal – which is the sovereign territory of an ally – but has previously refused to rule out the possible use of military force, drawing criticism from Washington's Latin American friends and foes alike.

He also repeated previous accusations against Panama of breaking promises it made for the final transfer of the strategic waterway in 1999 and of ceding its operation to China, allegations the Panamanian government has vehemently denied.

"We didn't give it to China, we gave it to Panama. And we're taking it back," Trump said.

Mulino said on X on Monday that Panama has administered the canal responsibly for world trade, including for the United States, and that it "is and will continue to be Panamanian."

On Tuesday, Panama complained to the United Nations over Trump's "worrying" threat and launched an audit of the Hong Kong-linked operator of two ports on the interoceanic waterway.

In a letter to U.N. Secretary-General Antonio Guterres, the government in Panama City referred to an article of the U.N. Charter precluding any member from "the threat or use of force" against the territorial integrity or political independence of another.

The missive, distributed to reporters Tuesday, urges Guterres to refer the matter to the U.N. Security Council, without asking for a meeting to be convened.

Asked Wednesday about the spat, Beijing denied it had ever "interfered" in the canal.

"China has always respected Panama's sovereignty over the canal and recognized the canal as a permanent neutral international waterway," foreign ministry spokeswoman Mao Ning said.

US pressure

The Panamanian comptroller's office that oversees public entities announced "an exhaustive audit" would be launched "aimed at ensuring the efficient and transparent use of public resources" at the Panama Ports Company.

The company, part of Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings, operates the ports of Balboa and Cristobal on either end of the canal.

The comptroller's office said the aim was to determine whether the company was complying with its concession agreements, including adequate reporting of income, payments and contributions to the state.

Hutchison Ports PPC said in a statement that it has "maintained and will continue to maintain a transparent and collaborative relationship" with Panamanian authorities.

"We remain steadfast in our commitment to comply with all laws and regulations, fully exercising our contractual responsibilities," the firm said.

"Our financial results, audited by an independent external auditor, have been shared annually with our partner, the Panamanian State, ensuring trust and clarity in our management."

Trump has been raising pressure for weeks over the canal, through which 40% of U.S. container traffic travels. He has refused to rule out using military force to reclaim it.

The Panama Ports Company's concession agreement was extended by 25 years in 2021.

The United States is the canal's main user, followed by China.

Since 2000, the waterway has contributed more than $30 billion to Panama's state coffers, including nearly $2.5 billion in the last fiscal year.

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