Panama Complains to UN over Trump Canal Threat, Starts Audit

Panama has lodged a complaint with the UN over Trump’s threat to limit access to the Panama Canal and has begun an audit in response.
In a letter to UN Secretary-General Antonio Guterres, the Panamanian government cited an article of the UN Charter that prohibits any member from “the threat or use of force” against the territorial integrity or political independence of another nation.
The letter, shared with reporters on Tuesday, urges Guterres to refer the issue to the UN Security Council, though it does not request the convening of a meeting.
In his inaugural address on Monday, Trump reiterated his concern that China was effectively “operating” the Panama Canal through its increasing presence around the waterway, which the United States handed over to Panama in 1999.
“We didn’t give it to China, we gave it to Panama. And we’re taking it back,” Trump stated.
In response, Panama’s comptroller’s office announced it would launch “an exhaustive audit” to ensure the “efficient and transparent use of public resources” by the Panama Ports Company, which operates the ports of Balboa and Cristobal at either end of the canal. The company is part of Hutchison Ports, a subsidiary of Hong Kong-based CK Hutchison Holdings.
The audit will focus on whether the company is meeting its concession agreements, including proper reporting of income, payments, and contributions to the state. Hutchison Ports PPC, in a statement, emphasized its commitment to transparency and collaboration with Panamanian authorities, stating that its financial results, audited by an independent external auditor, are shared annually with Panama’s government.
Panama’s President, José Raúl Mulino, firmly denied any foreign interference in the canal, stressing that it operates under a principle of neutrality.
“The canal is and will remain Panama’s,” he responded to Trump’s threats.
Trump, who has been increasing pressure over the canal’s control, also hinted at the potential use of military force to reclaim it. The Panama Ports Company’s concession was extended by 25 years in 2021.
While the United States remains the canal’s largest user, China ranks second. Since the canal’s handover, it has contributed over $30 billion to Panama’s economy, with nearly $2.5 billion in the last fiscal year alone.