- President-elect Donald Trump is criticizing the fees Panama imposes on U.S. shipping passing through the Panama Canal as "exorbitant," and suggests that Washington could retake control of the canal if changes aren't made.
- Trump has also accused Panama of allowing China to exert too much influence over the Panama Canal, suggesting that Chinese investments in infrastructure near the canal are a means of economically taking control.
- Panamanian President Jose Raul Mulino has rejected Trump's claim that the fees are "ridiculous," noting that the tariffs are transparently set and necessary to maintain and expand canal services.
- Mulino has also rejected Trump's assertion that the Panama Canal is owned by foreign nations and his proposal to cede sovereignty of the canal to Washington.
President-elect Donald Trump has criticized the government of Panama for imposing what he called "exorbitant" fees on American shipping and suggested that the United States could seek to regain control of the Panama Canal if the situation does not change.
In a post on his Truth Social network account, Trump described the fees charged by Panama as "ridiculous" and accused the country of abusing its control over the canal.
He emphasized how America constructed the canal in 1914 and how it is crucial to American trade, with over 70 percent of the cargo passing through the canal either originating in or destined for the United States.
Trump also criticized the 1977 Torrijos-Carter Treaties, which transferred control of the canal to Panama in 1999, calling the decision "foolish." He argued that the canal was intended for Panama to manage, not for other nations, such as China, to exert influence. His comments reflect concerns about Chinese investments in infrastructure near the canal, including ports and a bridge, though Panama has denied any foreign control over the waterway.
Panamanian President Jose Raul Mulino responded firmly to Trump's remarks, asserting Panama's sovereignty over the canal. Mulino stated that the canal’s tariffs are set transparently and are necessary to fund its maintenance and expansion. He emphasized that the Panama Canal Authority, an autonomous government agency, oversees its operations and that Panama has made significant investments to modernize the canal.
"The tariffs are not set on a whim," Mulino said, addressing Trump's complaints about rising fees. He noted that the canal's revenue, which reached nearly $5 billion in the last fiscal year, is vital to Panama’s economy, contributing about one-fifth of the government's annual revenue. (Related: Trump demanding NATO members spend 5% of GDP on defense – may impose TARIFFS on allies that do not pay up.)
Mulino: Every square meter of the canal belongs to Panama
The Panama Canal, a 51-mile waterway connecting the Atlantic and Pacific Oceans, is a cornerstone of global trade, handling approximately five percent of world commerce. Its strategic importance has made it a focal point of geopolitical discussions, particularly as severe weather and operational challenges impact its operations.
In 2023, droughts in Central America forced the canal to reduce the number of daily ship crossings it allowed, leading to increased fees for reserving transit slots and increased prices worldwide.
Trump's comments have sparked debate over the feasibility of the U.S. reclaiming control of the canal. While he did not specify how such a move would be achieved, his remarks have drawn strong reactions from Panamanian officials and citizens. Mulino reiterated that "every square meter of the canal belongs to Panama and will continue to belong" to the country, underscoring national unity on the issue.
The exchange highlights the complex history of U.S.-Panama relations, which have been shaped by the canal's construction, the 1989 U.S. invasion to oust Panamanian leader Manuel Noriega, and the eventual transfer of canal control to Panama in 1999.
Trump's suggestion of reclaiming the canal has raised questions about the potential impact on bilateral relations and the canal's role in global trade.
Watch this clip from Newsmax featuring political commentator Corey Lewandowski discussing what Trump asserting a desire to retake the Panama Canal says about American global dominance.
This video is from the NewsClips channel on Brighteon.com.
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