This year marks a significant milestone for Panama as the nation celebrates 25 years since it assumed full control of the Panama Canal. On December 31, 1999, the canal was officially transferred to Panama by the United States under the terms of the Torrijos-Carter treaties signed in 1977. The historic transfer symbolized a triumph of sovereignty and national pride for the Panamanian people, who see the canal as vital part of their identity and economic backbone.
President José Raúl Mulino presided over the anniversary celebrations, underlining the importance of the canal to Panama's sovereignty and development. In a message shared on social media, government officials reflected on the significance of the occasion:
“This date represents the life, sacrifice and sovereignty of our nation. Today we celebrate a triumph that reaffirms our pride as a people. Long live our canal, our flag and our beloved Panama, sovereign and responsible for its destiny,” the statement read.
Since taking over management of the canal, Panama has transformed it into one of the most critical maritime trade routes in the world. Beyond its economic importance, the canal serves as a unifying symbol for Panamanians, embodying decades of determination and resilience.
Ricaurte Vásquez, administrator of the Panama Canal Authority (ACP), praised the passage of the canal into Panamanian hands. “Our management has proven to be efficient, adaptable and committed to excellence, meeting the demands of global trade and contributing significantly to the nation's economic development,” he said, highlighting the professionalism and dedication of Panamanians in maintaining this vital infrastructure.
The journey to canal sovereignty has not been without its challenges. The United States built the canal between 1904 and 1914 and controlled it for decades. Tensions grew over time, culminating in the 1964 protests that highlighted Panama's demand for control over the waterway. These events led to negotiations that culminated in the Torrijos-Carter Treaties. Under the agreements, the United States relinquished all control by the end of 1999, with provisions guaranteeing the canal's permanent neutrality.
Panamanians have since embraced canal management with notable success. The ACP, which operates the canal, has achieved significant milestones over the past 25 years, including a 2016 expansion that allowed the transit of larger vessels, known as neopanamax vessels. The expansion, entirely financed by Panama, strengthened the canal's position in global trade by connecting 144 shipping lanes and 1,700 ports in 160 countries.
The channel's workforce, now entirely Panamanian, has been integral to its success. “Our team of 8,500 workers has made the canal a symbol of efficiency and national pride,” said Illya de Marotta, deputy administrator of the ACP. Operational improvements have also led to reduced transit times, cutting the average journey through the canal from 33 hours to 23 hours.
Despite these achievements, the canal faces challenges, particularly regarding water sustainability. Climate change and growing global trade demands have put pressure on the canal's water supply, prompting ACP countries to explore solutions to ensure its long-term sustainability.
The celebrations come amid controversy over recent comments by US President-elect Donald Trump, who suggested the US should regain control of the channel. Without evidence, Trump claimed that Chinese military personnel were involved in running the canal and criticized the tolls as exorbitant.
Panama's response to Trump's remarks was swift and resolute. President Mulino rejected the accusations, stating: “There are no Chinese soldiers controlling the canal. The canal belongs to the Panamanians and will remain so forever.”
Panamanians from all walks of life echoed this sentiment. Abel Zeballos, a media professor, expressed pride in the current state of the channel. “The canal represents the hard work of generations and is a source of immense pride for all Panamanians,” he said. Dalys Lee, a business administrator, added: “It's amazing to see how we've turned the canal into a successful enterprise that benefits the entire nation.”
Since the transfer, the canal has generated more than $28 billion for Panama, making it a cornerstone of the country's economy. In 2024 alone, ACP countries contributed more than $2.4 billion to the government, while the canal represents 7.7% of Panama's gross domestic product.
Panamanian historian Omar Jaén Suárez, who played a role in the original negotiations, dismissed Trump's remarks as out of touch. “The treaties guaranteeing the neutrality of the canal are internationally recognized and there is no realistic scenario in which control would revert to the United States,” he said.
Suárez also criticized the canal's tolls, explaining that they are determined in consultation with the international shipping community to maintain competitiveness.
As Panama looks to the future, the canal remains a symbol of national pride and resilience. Its success over the past 25 years is a testament to the vision and determination of the Panamanian people, ensuring that the canal continues to play a vital role in global trade and the country's development.
