Panama owns, operates, and controls the canal – exclusive interview with Erika Mouynes

After U.S. President Donald Trump's inaugural speech, where he mentioned the need to return the Panama Canal to the United States, the issue of control over the canal became a widely discussed topic. Some even questioned whether the Torrijos-Carter Treaty could be at risk. How serious do you think these claims are? And is there any real possibility that this treaty could be violated?

Let's set the record straight. Panama owns, operates, and controls the canal. We've been doing that successfully for over 25 years. In fact, 50% of the transit goes through the expanded canal, which was owned and built by Panamanians. What you're referring to are two treaties. The Panama Canal Treaty expired; it's done, finished. It ended in December 1999 when the transfer of control was completed to Panama.

So, it cannot be revived because it's already done. The only treaty that still survives and is valid is the Neutrality Treaty. That one has been ratified by over 60 countries and essentially ensures that the Panama Canal stays open, neutral, and accessible to all, and it has never been violated.

How do you assess the current state of relations between the United States and Panama in the context of these events?

Panama and the U.S. have been longstanding allies for many, many years. The U.S. remains Panama’s biggest trading partner, strategic partner, and historic partner. So, I think the relationship will remain strong, and if anything, we’re looking for more U.S. investment to come to Panama.

Some argue that U.S. shipping companies find canal fees too high, making transit costly for their fleets. Reports indicate that last year Panama's budget received approximately five billion dollars from these canal operations. Looking at the numbers, could you say which countries relied most on the canal over the past year?

The Panama Canal charges the same exact transparent fees to everyone—no distinction, no exception. In fact, every time there is a fee adjustment, the entire process goes through a public consultation, where all global shipping companies weigh in and provide feedback. When you ask about the countries that use it the most, again, the Panama Canal is a powerhouse when it comes to trade. The U.S., China, Chile, Japan, and South Korea are all top users of the Panama Canal.

Following these discussions, there were reports that Panama has agreed to no longer charge fees for U.S. government vessels. So, what is Panama's official position on this matter? And are there any planned changes in tariffs for U.S. ships?

As I mentioned, the Panama Canal has a neutrality treaty that is valid and still in effect, which essentially states that we cannot charge differentiated fees to any country, and that remains true—no exceptions, no special deals with respect to the U.S. and Panama. The technical teams on both sides are now addressing and meeting together, and we expect that no problems will arise from these meetings.

From the perspective of U.S. investments in Panama, is there a scenario in which Washington might reduce its investment volume?

We are expecting that the special attention we are receiving right now will actually have the opposite effect and generate more investment. In the end, Panama is a logistics hub in the Americas, and we want more investment from the U.S. I think it's also in the U.S.'s interest to increase its presence in Latin America.

Could you also address the recent news about the One Belt, One Road initiative from China, specifically Panama's decision to withdraw from the project?

Yes. There is an existing Memorandum of Understanding between Panama and China that is renewed every term, every three years, and you can choose to renew it or not. Panama has decided not to renew the initiative, but that doesn't mean there will be any effect on the diplomatic relations between Panama and China, or with any other country.

Is there anything you would like to add, something that we haven’t covered yet?

Well, I think it's important for people to hear the facts about the Panama Canal - how it's run, the issues we had with the water in the past, last year, have been resolved. The Panama Canal is now running at full capacity, with plans in place to address future water reserves. The fees are transparent, everything is going smoothly, and we’re looking forward to more investment from international investors in Panama.

Earlier, it was reported that prior to his inauguration, Donald Trump  made a number of statements such as annexing Greenland and Canada, as well as regaining control over the Panama Canal. Read more about why Trump wants Greenland, Canada, and the Panama Canal  in an article by a Kazinform correspondent.