The elected President of the United States, Donald Trump, has triggered a diplomatic crisis with Panama by suggesting that his administration might regain control of the Panama Canal.
During an event in Arizona, Trump criticized the canal concession made in 1977 by then U.S. President Jimmy Carter and called the fees charged by Panama for the passage of ships "ridiculous."
Trump has stated that the current fees of the Canal unfairly impact the Navy and American trade.
He also expressed concern about China's influence in the interoceanic route. "We would never allow it to fall into the wrong hands," he emphasized.
"If Panama cannot guarantee a safe, efficient, and reliable operation of the canal, then we will demand its return to us, without a doubt," he warned in an additional post on Truth Social.
Trump referred to the current tariffs as "absurd" and an "absolute scam," asserting that "the Panama Canal is a vital national asset for the United States due to its critical role in the economy and national security." The magnate hinted that, under his leadership, such conditions would not be tolerated.
"If the principles, both moral and legal, of this magnanimous gesture of generosity are not respected, we will demand that the Panama Canal be returned to the United States," said Trump. "Therefore, Panamanian officials, I urge you to act accordingly," he warned.
The Panama Canal, completed by the United States in 1914, was handed over to Panama on December 31, 1999, under the agreements of the Torrijos-Carter treaty, signed in 1977.
Since then, Panama has successfully managed the waterway, generating nearly $5 billion in revenue for fiscal year 2024 and contributing $2.47 billion to the treasury.
Panamanian response and international support
The president of Panama, José Raúl Mulino, responded firmly to Trump's statements.
"The canal belongs to Panama and will continue to do so. The sovereignty and independence of our country are non-negotiable," Mulino said in a video shared on X. The president emphasized that the Panamanian administration has ensured efficient and profitable operations, defending the rates as necessary for its maintenance.
From China, the spokesperson for the Foreign Ministry, Mao Ning, expressed support for Panama, recalling the historical Chinese demonstrations in favor of Panama's sovereignty over the canal.
"We believe that, under Panama's efficient management, the Canal will continue to make new contributions to global integration," he stated.
The Panamanian president, who mentioned the treaties that address the sovereignty of the canal, explained that the fees are set publicly and in an open hearing.
Trump, through his social media platform Truth Social, stated: "We'll see."
Shortly after, he shared an image of an American flag with the message: "Welcome to the United States channel."
The channel as a strategic piece
The Panama Canal is a key axis of global trade, as it allows ships to connect the Atlantic and Pacific Oceans without having to sail around South America.
In 2023, it faced operational challenges due to the drought, which resulted in an increase in fees for reserving transit spaces.
Panama, which has the United States, China, Japan, and South Korea as its main users of the Canal, has returned to normal operations after overcoming weather-related restrictions.
However, adjustments to the rates are anticipated for 2025.
Although Trump will officially take office on January 20, he has already begun to exert political pressure in the final days of Joe Biden's administration.
In Arizona, during the conservative event AmericaFest, he promised a "Golden Age" for the United States, characterized by a thriving economy, secure borders, and the resolution of international conflicts such as those in the Middle East and Ukraine.
In this context, the threat of reclaiming the Panama Canal adds to an increasing list of promises and measures that the Republican seeks to implement in his next term.
Frequently Asked Questions about the Diplomatic Crisis between the United States and Panama Over the Panama Canal
Why does Donald Trump threaten to reclaim the Panama Canal?
Donald Trump threatens to regain control of the Panama Canal due to his disagreement with the current shipping fees, which he deems "absurd" and "an absolute scam." He also expresses concern about China's influence over the waterway and questions Panama's ability to ensure the canal operates safely.
What has been Panama's response to Trump's statements about the Canal?
The president of Panama, José Raúl Mulino, firmly responded by stating that the canal belongs to Panama and will continue to do so. Mulino defended his country's sovereignty and independence, emphasizing that the Panamanian administration has ensured an efficient and profitable operation of the canal.
What influence does China have on the Panama Canal according to Trump?
Donald Trump has expressed concern about China's influence in the Panama Canal, suggesting that this factor could jeopardize the security and control of the interoceanic route. However, no specific details were provided on how this influence manifests.
What role does the Panama Canal play in global trade?
The Panama Canal is a key axis of global trade, allowing ships to connect the Atlantic and Pacific Oceans without having to navigate around South America. This route is crucial for international commerce and for countries like the United States, China, Japan, and South Korea, which are its main users.
Filed under: