Panama has formally protested to the United Nations against Trump's recent threats over canal sovereignty and launched an audit of ports managed by a Hong Kong-linked company, intensifying tensions over control of the strategic waterway.
While conducting an audit of the Hong Kong-linked operator of two ports on the interoceanic waterway, Panama has taken issue with US President Donald Trump's "worrying" threat to grab the Panama Canal and has taken its grievances to the United Nations.
The government of Panama City cited a UN Charter provision that forbids any member from threatening or using force against another member's territorial integrity or political independence in a letter sent to UN Secretary-General Antonio Guterres.
The letter, which was sent to media on Tuesday, strongly suggests that Guterres bring the issue before the United Nations Security Council, although it does not specifically request a meeting of that body.
After the United States ceded control of the Panama Canal to China at the close of 1999, Trump reiterated in his inauguration speech on Monday that Beijing was using its increasing presence in the region to run the canal properly.
"We didn't give it to China, we gave it to Panama. And we're taking it back," Trump declared.
The Panama Ports Company will be subject to a thorough audit to ensure that public funds are being used efficiently and transparently, according to the Panamanian comptroller's office.
Balboa and Cristobal, two ports on opposite ends of the canal, are run by the same firm. Hutchison Ports is a division of the Hong Kong-based CK Hutchison Holdings.
The goal, according to the comptroller's office, was to check if the corporation was making all the required payments and reports to the state as per its concession agreements.
The president of Panama, Jose Raul Mulino, has vehemently disputed reports that any foreign power is meddling with the canal, claiming that it operates according to a neutral concept.
"The canal is and will remain Panama's," Mulino asserted in reaction to Trump's declarations.
For weeks, the Republican has been pressuring for the return of the canal, which accounts for 40% of US container trade, and has not ruled out the possibility of resorting to military action.
A 25-year extension to the concession deal with the Panama Ports Company was granted in 2021.
Per The Raw Story, China is the canal's second-largest user, after the United States. The canal has brought almost $30 billion to Panama's government coffers since 2000, with nearly $2.5 billion coming in the most recent fiscal year.
