Politics Economy Country 2026-01-29T10:13:35+00:00

Lula backs Panama's neutrality and sovereignty over canal

Brazilian President Luiz Lula da Silva reaffirmed his support for Panama's sovereignty over the Panama Canal, stating that its neutrality is the foundation for fair international trade. This statement comes after a period of diplomatic tension with the U.S. and the signing of new trade agreements between the two nations.


Lula backs Panama's neutrality and sovereignty over canal

The president of Brazil, Luiz Inácio Lula da Silva, affirmed that supporting the neutrality of the Panama Canal is equivalent to defending an international trade based on multilateral rules, during a press conference following a bilateral meeting with his Panamanian counterpart, José Raúl Mulino.

Lula reiterated his support for Panamanian sovereignty over the interoceanic canal after the meeting, in which both leaders signed trade agreements and reviewed the state of bilateral relations between Panama and Brazil.

“Defending the neutrality of the canal is defending a fair, balanced international trade based on multilateral rules,” the Brazilian leader emphasized.

Lula's statements come after a period of diplomatic tension between Panama and the United States in 2025, following threats from then-US President Donald Trump to attempt to regain control of the Panama Canal, citing alleged Chinese influence over the interoceanic waterway.

These assertions were categorically rejected by the government of President José Raúl Mulino, which demanded that Washington not involve Panama in geopolitical disputes between world powers.

According to recent statements from officials of both countries, this episode of tension appears to have been overcome, with a mutual commitment to strengthen bilateral ties in political, economic, and commercial matters.

The Brazilian leader also recalled that, last August, during an official visit by Mulino to Brazil, he had already expressed that his government fully supports Panama's sovereignty over the canal, administered by the Central American country for over 25 years.