The Panama Canal Authority has enlisted the high-powered U.S. law firm Vinson & Elkins, shelling out nearly $7 million since November, as former President Donald Trump ramps up threats to reclaim control of the crucial waterway.
According to filings under the U.S. Foreign Agents Registration Act (FARA), the firm is advising the authority on legal strategy concerning the U.S. government, including congressional inquiries, legislative actions, treaties, and policy matters. The filings, dated January 31, name ten lawyers involved in the case, including G. Zachary Terwilliger, a former U.S. attorney under Trump’s first administration.
While the firm has not publicly commented on its role, records indicate billing rates between $1,050 and $1,500 per hour. The firm has already spent $3.8 million on related services, including over $780,000 paid to Mayer Brown, another prominent U.S. law firm.
Panama has also retained two lobbying firms, BGR Group and VantageKnight, as tensions escalate. Trump, in a fiery speech on December 22, accused Panama of imposing exorbitant tolls and warned against potential Chinese influence over the canal. His concerns were echoed by U.S. Secretary of State Marco Rubio, who threatened action if Panama does not curtail what Washington sees as Beijing’s growing presence in the region.
Panama’s President, Jose Raul Mulino, hit back on Thursday, calling U.S. claims “lies and falsehoods” after reports surfaced that American government vessels might be granted toll-free access to the canal.
The Panama Canal, a key passage for 2.5% of global trade, has been under full Panamanian control since 1999. With Trump openly questioning that sovereignty, Panama appears to be lawyering up for what could be a fierce geopolitical standoff.
