President-elect Donald Trump threatened to take back control of the Panama Canal over the weekend, arguing the U.S. is being treated unfairly over the “ridiculous” fees shippers are being charged to pass through the channel.
“The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security,” he said on Truth Social—a message he also shared with supporters at Turning Point USA’s AmericaFest in Arizona.
“A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports," he continued. "The United States is the Number One user of the Canal, with over 70 percent of all transits heading to, or from, U.S. ports. Considered one of the Wonders of the Modern World, the Panama Canal opened for business 110 years ago, and was built at HUGE cost to the United States in lives and treasure - 38,000 American men died from infected mosquitos in the jungles during construction. Teddy Roosevelt was President of the United States at the time of its building, and understood the strength of Naval Power and Trade. When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else. It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete ‘rip-off’ of our Country will immediately stop….”
Control of the U.S.-built canal was relinquished to Panama in 1999 under a treaty President Jimmy Carter signed in 1977.
Trump noted that the U.S. will not stand for control of the canal falling “into the wrong hands."
“It was not given for the benefit of others, but merely as a token of cooperation with us and Panama," he said. "If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question. To the Officials of Panama, please be guided accordingly!”
Panama currently charges fees for boats and ships to pass through the canal ranging anywhere from $0.50 to $300,000, depending on the size and purpose of the vessel. The U.S. uses the canal more than any other country, accounting for more than three quarters of the cargo traveling through the passage each year. [...]
China is the canal’s second-biggest customer. A Hong Kong–based Chinese company controls two of the five ports adjacent to the canal. (National Review)
Panamanian President José Raúl Mulino fired back on Sunday, insisting the canal belongs to his country.
“As president, I want to express clearly that every square meter of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so,” Mulino said in video statement. “The sovereignty and independence of our country are not negotiable.”
Mulino rejected the notion that the canal is either under "direct or indirect control" by any other nation, including China.
“As a Panamanian, I strongly reject any manifestation that distorts this reality," he added.
Trump responded on Truth Social: