Panama files UN complaint over Trump's threat to seize control of canal, launches audit of port operator

synopsis

Panama has formally lodged a complaint with the United Nations in response to US President Donald Trump's "worrying" threat to seize control of the Panama Canal. At the same time, the Panamanian government has initiated an audit of the Hong Kong-linked operator managing two ports along the vital waterway.

In a letter to UN Secretary-General Antonio Guterres, Panama referenced an article of the UN Charter that prohibits the "threat or use of force" against another nation's territorial integrity or political independence.

The letter, shared with reporters on Tuesday, calls for Guterres to refer the issue to the UN Security Council, but it does not request a formal meeting.

Trump had repeated his claim during his inaugural address on Monday, accusing China of "operating" the Panama Canal due to its growing presence in the region. The US handed over control of the canal to Panama at the end of 1999.

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

The Panamanian comptroller’s office, responsible for overseeing public entities, has announced that it will conduct "an exhaustive audit" to ensure the "efficient and transparent use of public resources" at the Panama Ports Company.

This company, a subsidiary of Hong Kong-based CK Hutchison Holdings, operates the Balboa and Cristobal ports at either end of the canal. The audit will focus on whether the company is adhering to its concession agreements, including the proper reporting of income, payments, and contributions to the Panamanian government.

In response to growing tensions, Panama’s President José Raul Mulino firmly denied any foreign interference in the canal, reiterating that it operates on a principle of neutrality. "The canal is and will remain Panama's," Mulino declared in light of President Trump’s threats.

Trump has escalated pressure over the canal in recent weeks, highlighting that it handles 40% of US container traffic, and he has not ruled out military action to reclaim it.

The Panama Ports Company’s concession agreement was extended for 25 years in 2021. The United States remains the primary user of the canal, followed by China. Since the canal's handover to Panama in 1999, it has contributed over $30 billion to Panama's national revenue, including nearly $2.5 billion in the last fiscal year.