By Maggie Johnson
January 13, 2025
Donald Trump has reignited controversy over the Panama Canal, criticizing the fees levied on U.S. ships and suggesting that the U.S. might retake control of the waterway. Calling the charges "exorbitant," Trump accused Panama of exploiting American generosity, asserting that the canal was built as a gesture of cooperation, not to benefit others at America's expense. He also expressed concern over China's growing influence near the canal, as Chinese companies operate two nearby ports and rank as its second-largest customer.
The 51-mile Panama Canal, completed in 1914, is one of the world's most important shipping lanes, connecting the Atlantic and Pacific Oceans. Its construction, initiated by the U.S. after Panama's independence from Colombia, established the U.S. as a global engineering leader but came at a steep human cost, with over 5,600 lives lost. U.S. control of the canal fueled resentment among Panamanians, leading to riots in 1964. In 1977, President Jimmy Carter signed a treaty to return the canal to Panama, a process completed in 1999. This transition was controversial, with figures like Ronald Reagan arguing that the canal should remain under U.S. jurisdiction.
Today, the canal is managed by the Panama Canal Authority and plays a vital role in global trade, accommodating around 14,000 ships annually and facilitating the movement of $270 billion in cargo. However, it faces challenges. A prolonged drought, worsened by El Niño, has caused water levels in Lake Gatún—the canal's water source—to drop significantly. This has led to restrictions on ship traffic and weight, exacerbating supply chain pressures. Despite these issues, the canal's profits rose 9.5% last year, fueled by higher fees, which Trump has condemned as unfair to the U.S.
Trump's remarks have sparked a backlash from Panama, with President José Raúl Mulino rejecting any claims of external control and reaffirming the country's sovereignty over the canal. Mulino also denied that China wields undue influence, emphasizing that the canal is fully under Panamanian jurisdiction.
Trump's stance on the Panama Canal aligns with his broader approach to foreign relations, where he often questions the sovereignty of other nations. His previous comments about Canada and Greenland reflect a pattern of viewing territories as negotiable assets. For Panama, Trump's threats underscore ongoing geopolitical pressures and the complexities of maintaining control over one of the world's most strategic waterways.
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