President-elect Donald Trump has stirred controversy with his latest remarks on the Panama Canal.
According to the Daily Caller, Trump recently declared that the U.S. might demand the return of the Panama Canal from Panama if the high transit fees are not rescinded immediately.
On a Saturday night, via his Truth Social platform, Trump called out Panama for what he considers excessive charges imposed on the use of the Panama Canal.
Describing the fees as a "complete rip-off," he argued that Panama's financial demands are unreasonable, especially given past U.S. generosity.
Trump did not shy away from invoking historical contexts in his critique. He blamed former president Jimmy Carter for relinquishing control over the strategic waterway to Panama under a 1977 treaty, a decision Trump labeled as imprudent.
In 1999, Panama took control of the Panama Canal, fulfilling the terms of a treaty that then-President Jimmy Carter and Panama's Omar Torrijos had signed.
The 1903 Hay-Bunau-Varilla Treaty initially granted the U.S. the rights to construct, maintain, and operate the canal after the U.S. supported Panama's independence from Colombia.
Trump underscored the strategic importance of the Panama Canal to U.S. interests, referring to it as a "VITAL national asset." This statement comes amid concerns over increasing Chinese influence in Latin America, which Trump alluded to by insisting that the canal should not fall into "the wrong hands."
As a critical trade artery, the Panama Canal links 70% of its transits to U.S. Ports, signaling its significant role in American maritime commerce. Just recently, on August 12, 2024, a cargo ship and a tugboat passed through the Cocoli Locks, highlighting significant canal traffic.
Before releasing his statement, Trump expressed his resolve:
The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed on Panama by the U.S. This complete 'rip-off' of our country will immediately stop.
"We would and will NEVER let it fall into the wrong hands! It was not given for the benefit of others but merely as a token of cooperation with us and Panama. 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," said President-elect Trump.
Implications of such a bold move are widespread, affecting international relations and economic policies. The Panama Canal's future is even more in focus as it approaches its 110th inauguration anniversary on August 15, 2025.
In wrapping up, President-elect Trump's statements have reignited debate over the longstanding international arrangement regarding the Panama Canal. His claims emphasize a broader concern regarding global tactical assets while expressing a readiness to overturn historical agreements if perceived as harmful to U.S. interests.
