Brazil announces its accession to the Panama Canal Neutrality Treaty

During a meeting in Brasilia with Panamanian President José Raúl Mulino, Brazilian President Luiz Inácio Lula da Silva announced on Thursday, August 28, Brazil's accession to the Panama Canal Neutrality Treaty.

Quoted by La Prensa , Lula affirmed that Brazil “fully supports Panama’s sovereignty over the canal, won after decades of struggle.”

In force since October ^1, 1979, the treaty governs the canal and guarantees its neutrality on the international scene, including “in times of war,” so that it remains “safe and open to peaceful transit ” and is not “the target of reprisals in any armed conflict between other nations.”

In response, the Panamanian daily continues, Raúl Mulino thanked Lula for this support and stressed the importance of increased “bilateral and regional ” cooperation, in a context of high international tensions. At the same time, as reported by the newspaper O Globo , the Brazilian leader denounced the use of international trade as an “instrument of blackmail,” a veiled criticism aimed, without naming him, at US President Donald Trump, the Brazilian daily believes.

The same tone is echoed by La Estrella de Panamá , which welcomes Brazil's accession and considers that the Panamanian government is "acting as it should" to "avoid [Panama] becoming a place of foreign interference." The newspaper warns:

“For the time being, there is no sign that tensions between the major powers in their struggle to divide up the world will ease. This is why […] it is necessary to establish a long-term strategy that combines diplomatic strength and commercial projection.”

Because, La Prensa points out, this decision comes in a sensitive context, particularly with the United States. Since 2024, “Trump has openly attacked the Panama Canal,” believing that the passage operates under the influence of China.

It is also worth remembering that, a few months later, in April 2025, Panama finally gave in to pressure from Washington by agreeing to the deployment of American troops on its territory , after the visit of the American Secretary of Defense to the isthmus. A decision that was strongly criticized by the country's press.

On the Brazilian side, O Globo points out , Lula authorized on Thursday the start of consultations and measures to apply the "economic reciprocity law" with the United States, in response to the 50% customs duties imposed by Donald Trump on Brazilian products.