Donald Trump, the US president-elect, has asked Panama to reduce its fees on canal access for American vessels or else face pressure to hand back control of the Panama Canal.
Trump, speaking to a group of supporters at a rally in Arizona, criticized Panama’s pricing policies for being “exorbitant”, “highly unjust” and claiming that they place an unfair burden on American naval and shipping operations.
Trump said that the fees charged by Panama were “ridiculous, and highly unfair” during an event organized by Turning Point USA. This conservative activist group played a key role in Trump’s successful campaign for 2024.
Trump’s remarks have caused diplomatic tension. Panamanian president Jose Raul Mulino has rejected the request, saying that Panama’s sovereignty over the canal “is non-negotiable”.
Mulino said that Panama owns “every inch” of canal, underscoring the country’s independence.
Who is the owner of the Panama Canal Canal?
Trump’s remarks are a rare example of an American leader expressing a possible territorial claim. He did not say how he would achieve such a transfer, but his comments suggest that the US’s foreign policy will change dramatically under Trump.
After a 1977 agreement for a gradual handover, the United States built the Panama Canal in the early twentieth century. It remained in US hands until 1999.
Trump called the Panama Canal a vital national asset and warned of aggressive actions if Panama did not lower its shipping charges.
He said that if shipping rates were not reduced, they would demand the Panama Canal back to them, fully, immediately and without hesitation.
Around 14,000 ships can be accommodated annually in the canal, which remains a vital economic link for world trade. Panama’s waterway is of strategic significance to US commercial and military interests. However, it has always maintained its independence since taking full control.
Trump’s fiery rants drew harsh rebukes and raised eyebrows worldwide.
Trump’s Warnings: Is he Serious?
Trump’s comments also highlight his wider stance in trade and on international relations.
In the same speech he accused Canada and Mexico of “unfair trading practices”, and that they allowed drugs and immigrants to enter the United States.
He acknowledged Mexican President Claudia Sheinbaum, calling her a “wonderful lady,” but his remarks hinted that he would continue his aggressive trade policies of his former administration.
In his speech at Turning Point USA’s annual conference on immigration, crime and foreign trade, Trump echoed the themes that characterized Trump’s campaign, including those of illegal immigration, criminality, and international trade.
The speech avoided the recent controversy over debt ceiling and government spending, and instead focused on rallying supporters and asserting its vision of American leadership.
Trump’s comments may be appealing to Trump supporters but they also signal diplomatic difficulties as Trump prepares for his presidency.
The international community is watching to see if these claims are translated into policies.
Trump’s America-first policy may usher in a new age of US Foreign Relations characterized by unorthodox diplomatic practices and economic nationalism.
Panama’s position is clear for now: The canal will not be subject to negotiation.
This article Why does Trump threaten to take back control of the Panama Canal. This post may change as new information becomes available
