Trump on Saturday wrote on his Truth Social platform that the Panama Canal plays a "critical role" in the US economy and national security. He demanded Panama reduce fees on the canal or return it to US control, reports Xinhua news agency.

"It is ridiculous," said Jones Cooper, a professor at the University of Panama. Panama is the rightful owner of the canal, and the United States has no legal basis to reclaim it, he added, noting that the United States profited significantly during its occupation while Panama gained little in return.

Julio Yao, a Panamanian international relations scholar, called Trump's comment the latest example of the American "big stick" policy. He emphasised that the Panama Canal must not be returned to the United States.

According to the Torrijos-Carter Treaties signed in 1977 by the then-Panamanian President Omar Torrijos and then-US President Jimmy Carter, Panamanians recovered their sovereignty over the canal on December 31, 1999.

Earlier on Sunday, Panama's President Jose Raul Mulino said that the canal will "continue to be in Panamanian hands" after US President-elect Donald Trump threatened to retake it.

Every square meter of the Panama Canal and its adjacent area belong to Panama and "will remain so," and "the sovereignty and independence of our country are not negotiable," Mulino said in a social media video post.

Trump on Saturday called the Panama Canal "a VITAL National Asset for the United States," threatening to retake the canal, citing "exorbitant prices" on US ships.

Mulino said he hopes to maintain a "respectful" relationship with the next US government. He also pointed out that security issues such as illegal migration, drug trafficking, terrorism, and organised crime should be a priority in the two countries' bilateral agenda.

He also recalled the Torrijos-Carter Treaties and added that it established the permanent neutrality of the Panama Canal, "guaranteeing its open and safe operation for all nations. (...) any position to the contrary is invalid."

"(The tariffs) are established based on an open hearing, considering market conditions, international competition, operating costs and the maintenance and modernisation needs of the interoceanic waterway," said Mulino.

"The Canal will continue to be in Panamanian hands as an inalienable patrimony of our nation and guaranteeing its use for the peaceful and uninterrupted transit of ships of all nations," said the Panamanian president.

Courtesy Media Group: IANS