This year marks a significant milestone for Panama as the nation celebrates 25 years since taking full control of the Panama Canal. On December 31, 1999, the canal was officially transferred to Panama from 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 view the canal as a vital part of their identity and economic backbone.
President José Raúl Mulino presided over the anniversary celebrations, emphasizing 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 in charge of its destiny,” read the statement.
Since taking over the canal’s operation, 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 canal’s transition to Panamanian hands. “Our management has proven to be efficient, adaptable, and committed to excellence, meeting the demands of global trade while 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 sovereignty over the canal was not without challenges. The United States constructed the canal between 1904 and 1914 and controlled it for decades. Tensions grew over time, culminating in protests in 1964 that underscored 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 ensuring the canal’s permanent neutrality.
Panamanians have since embraced their stewardship of the canal with remarkable success. The ACP, which manages the canal, has achieved significant milestones over the past 25 years, including the 2016 expansion that allowed for the transit of larger vessels, known as neopanamax ships. The expansion, entirely funded by Panama, has strengthened the canal’s position in global trade by connecting 144 maritime routes and 1,700 ports in 160 countries.
The canal’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, ACP’s deputy administrator. 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 increasing demand for global trade have put pressure on the canal’s water supply, prompting the ACP to explore solutions to ensure long-term viability.
The celebrations come amid controversy over recent comments from U.S. President-elect Donald Trump, who suggested that the United States should regain control of the canal. Without evidence, Trump claimed that Chinese military personnel were involved in managing the canal and criticized the toll fees as exorbitant.
Panama’s response to Trump’s remarks has been swift and resolute. President Mulino dismissed the claims, stating, “There are no Chinese soldiers controlling the canal. The canal belongs to Panamanians and will remain that way forever.”
Panamanians from all walks of life echoed this sentiment. Abel Zeballos, a media professor, expressed pride in the canal’s current status. “The canal represents the hard work of generations, and it’s a source of immense pride for all Panamanians,” he said. Dalys Lee, a business administrator, added, “It’s incredible to see how we’ve turned the canal into a successful enterprise that benefits the entire nation.”
The canal has generated over $28 billion for Panama since the transfer, making it a cornerstone of the country’s economy. In 2024 alone, the ACP contributed more than $2.4 billion to the government, with the canal accounting for 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 canal’s neutrality are internationally recognized, and there’s no realistic scenario in which control would revert to the United States,” he said.
Suárez also addressed criticisms of the canal’s toll fees, 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 stands as a testament to the vision and determination of the Panamanian people, ensuring that the canal continues to play a pivotal role in global trade and the country’s development.
