23-12-2024 (PHOENIX) Donald Trump has ignited a diplomatic firestorm after suggesting he would seek to reassert American control over the Panama Canal, prompting a swift and stern response from Panamanian authorities.
Speaking at the AmericaFest conservative gathering in Phoenix on Sunday, Trump accused Panama of overcharging vessels for passage through the strategic waterway and raised concerns about potential Chinese influence over the canal’s operations.
“We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else,” Trump declared to his supporters, before suggesting he would demand the return of the canal to US control if certain “moral and legal principles” were not upheld.
The controversial remarks were followed by a provocative social media post on Truth Social featuring an American flag superimposed over the canal, accompanied by the caption “Welcome to the United States Canal!”
Panamanian President Jose Raul Mulino swiftly rebuked Trump’s statements in a recorded message, emphasising that Panama’s sovereignty over the canal was “non-negotiable”. Mulino defended the canal’s fee structure, stating that rates were not arbitrarily set, and dismissed concerns about Chinese influence over the waterway’s administration.
The Panama Canal, which handles approximately 2.5% of global maritime trade and serves as a crucial artery for US commerce, was transferred to full Panamanian control in 1999 following the 1977 Torrijos-Carter Treaties. The waterway facilitates the passage of up to 14,000 vessels annually, playing a vital role in global supply chains.
Legal experts note that any attempt to reclaim control of the canal would lack basis in international law. The remarks add to Trump’s growing list of territorial ambitions, including recent suggestions about incorporating Canada into the United States and renewed interest in purchasing Greenland from Denmark.
The diplomatic tension escalated further when Trump responded to Mulino’s statement with a confrontational “We’ll see about that!” on social media, highlighting the potential for strained US-Panama relations should Trump return to the White House.
Whilst Chinese companies maintain a presence at the canal’s terminal ports through a Hong Kong-based subsidiary, Panama has consistently maintained full sovereign control over the waterway’s operations and administration.