President-elect Donald Trump has stirred controversy by threatening to reassert U.S. control over the Panama Canal, accusing Panama of imposing excessive fees for its use. This statement prompted a strong response from Panamanian President Jose Raul Mulino.
Key Highlights:
Trump’s Accusations:
Speaking at an event in Arizona, Trump claimed, “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”
He expressed concerns about potential Chinese influence over the canal, stating he would not allow it to fall into the “wrong hands.”
Social Media Post:
Trump shared an image on Truth Social of an American flag over a waterway, captioned, “Welcome to the United States Canal!”
Historical Context:
The Panama Canal was previously owned by the U.S. but was handed over to Panama in 1999 under agreements signed in 1977.
Trump asserted that if Panama does not adhere to the principles of this transfer, the U.S. would demand the canal’s return.
Panama’s Response:
In a recorded message, President Mulino emphasized Panama’s sovereignty, stating, “Panama’s independence is non-negotiable.”
He clarified that China does not control the canal, although a subsidiary of CK Hutchison Holdings manages two ports at its entrances.
Economic Significance:
The Panama Canal is crucial for global trade, accommodating up to 14,000 ships annually and representing 2.5% of global seaborne trade.
It plays a vital role in U.S. imports and exports, particularly for commodities like liquefied natural gas.
International Law Considerations:
Experts note that Trump would have no legal basis under international law to reclaim control of the canal, raising questions about the feasibility of his threats.
Previous Territorial Aspirations:
This is not the first time Trump has hinted at territorial expansion; he has previously suggested making Canada a U.S. state and expressed interest in purchasing Greenland.