Trump Demands Fee Reductions or Panama Canal Return
President-elect Donald Trump has called on Panama to lower fees for the Panama Canal or risk the US demanding its return to American control. Speaking at a rally in Arizona, Trump described the current fees as “exorbitant” and a “rip-off” of American shipping and naval vessels.
The remarks have drawn a sharp rebuke from Panama’s President José Raúl Mulino, who asserted that the canal and surrounding areas are non-negotiable parts of Panama’s sovereignty.
Panama Canal’s Strategic Importance
The 51-mile Panama Canal, completed in the early 1900s, connects the Atlantic and Pacific Oceans, serving as a vital waterway for global trade and US military operations.
- Annual Traffic: Approximately 14,000 ships transit the canal each year.
- US Trade: Over 75% of cargo through the canal originates from or is destined for the US, according to the Panama Canal Authority.
The canal was under US control until 1999, following treaties signed in 1977 that gradually returned sovereignty to Panama while guaranteeing neutral access for all nations.
Trump’s Justification and Criticism
Trump labeled the canal a “vital national asset” for the US and warned that if fees are not reduced:
“We will demand that the Panama Canal be returned to us, in full, quickly and without question.”
However, analysts suggest that recent fee increases are tied to a historic drought affecting canal operations, as noted by shipping industry experts at Lloyd’s List.
Panama’s neutrality treaty ensures fair access to the canal, with tolls based on ship size and cargo rather than the country of origin.
Diplomatic Fallout
Panama’s president responded strongly to Trump’s remarks, stating:
“Every square metre of the canal belongs to Panama. Our sovereignty is not negotiable.”
The comments also raised concerns about potential shifts in US foreign policy, with Trump hinting at unprecedented moves to claim territory.
A Wider Political Context
Trump’s remarks on the canal followed criticisms of Canada and Mexico over trade practices and immigration. He also reiterated his campaign themes of crime, immigration, and foreign trade, while avoiding domestic issues like the debt ceiling debate.
The speech was delivered at Turning Point USA’s annual conference, a major gathering of conservative activists that supported Trump during his election campaign.
Future of the Panama Canal Dispute
Trump’s demands highlight a potential diplomatic clash as he prepares to take office in January 2025. However, with no clear indication of how such demands could be enforced, the remarks may serve more as a political rallying point than a concrete policy.
External Link: Read more about Trump’s Panama Canal comments at BBC News.
Internal Link: Stay updated on international relations at Kenkou Land.
