Panama marks canal handover anniversary in shadow of Trump threat

Panama on Tuesday marked the 25th anniversary of the United States' handover of its interoceanic canal, a milestone overshadowed by President-elect Donald Trump's threat to demand control be returned to Washington.

The anniversary came two days after the death of former US president Jimmy Carter, who in 1977 signed the treaties that led to the vital waterway's eventual transfer decades later.

Panamanian President Jose Raul Mulino said at the anniversary ceremony, held at the Panama Canal Authority's headquarters, that "a sadness... fills us with the death of Jimmy Carter."

A minute of silence was held in memory of Carter, whose endorsement of the treaty set up transfer of the canal -- completed by the United States in 1914 -- to Panama on December 31, 1999.

Former Panamanian president Mireya Moscoso, who oversaw the symbolic turn-of-the-century handover, told AFP that "today we feel the same emotion" as on that occasion 25 years ago.

Neither Mulino nor the various other speakers at Tuesday's ceremony mentioned Trump and his recent threats in their speeches.

But the US President-elect has sparked anger among Panamanians by saying he will demand the canal "be returned to us" if Panama could not ensure its "secure, efficient and reliable operation."

Trump has slammed what he called "ridiculous" fees for US ships passing through the canal and has alleged, without evidence, that Chinese soldiers were "lovingly, but illegally, operating" the channel.

Panama's political class and many of its citizens have roundly rejected Trump's threats.

The 1977 treaties "put an end to an era of subjugation and began a period of independence and dignity," another former president, Martin Torrijos, told AFP.

"Any attempt to reverse or violate our sovereignty will be condemned and rejected by all Panamanians," he added.

Mulino has ruled out negotiations with Trump over control of the canal, and denied that China had any influence over it.

"There are no Chinese soldiers in the canal, for the love of God," he said last week.

Francisco Cedeno, a 51-year-old graphic designer, described Trump's threats as "completely nonsensical."

"He should first try to resolve his country's many problems and forget about the canal," Cedeno said.

 'The people don't benefit'  

An estimated five percent of global maritime traffic passes through the Panama Canal, which was inaugurated in 1914 and allows ships to avoid the long, hazardous route around the southern tip of South America.

The United States is its main user, accounting for 74 percent of cargo, followed by China with 21 percent.

The canal generates six percent of Panama's national economic output and 20 percent of its fiscal revenues.

Since 2000 it has pumped around $28 billion into state coffers.

However, many Panamanians say they have not felt the benefits.

"We Panamanians should not be as poor as we are because the canal brings in a lot of money," said Clotilde Sanchez, a 55-year-old cleaner in Panama City's banking district.

"The people don't benefit from the canal, only politicians do," said her colleague Nadili Perez, 40.

In Tuesday's ceremony, respect was paid to around 20 Panamanians who were killed in 1964 after students tried to raise a Panamanian flag in the former "Canal Zone," a US enclave that had its own military bases, police and justice system.