Donald Trump has called for the United States to regain control over the Panama Canal if Panama continues to manage the critical waterway in a manner he deems unacceptable. In a recent post on his Truth Social platform, Trump criticized the fees imposed by Panama for using the canal, labeling them as “ridiculous” and claiming that the US has shown significant generosity to Panama over the years. He characterized the current pricing as a “complete ‘rip-off’” and vowed that such practices would come to an end under his leadership.
Trump went on to express concerns about the potential for Chinese influence over the canal, emphasizing its importance as a national asset for the US and insisting that it shouldn’t be under China’s management. His comments reflect anticipated changes in US foreign policy once he assumes office in January, particularly regarding China and the NATO alliance. Trump has indicated he will demand that NATO member states increase their defense spending significantly.
The background to this issue dates back 25 years when the US formally handed over control of the canal to Panama, following the 1977 Torrijos-Carter Treaties negotiated by then-president Jimmy Carter. The canal, which links the Atlantic and Pacific Oceans and greatly influences global trade, is currently managed by the Panama Canal Authority. Despite the management transition, the US remains a vital customer, accounting for a significant portion of the canal’s cargo transits.
Recent challenges have plagued the canal, most notably severe drought conditions that have drastically reduced ship transits. This past fiscal year saw a 29% decrease, with only 9,944 vessels passing through compared to the previous year’s 14,080. The disruptions created by this situation have raised concerns about supply chains and overall economic impacts.
In light of Trump’s recent assertions, a spokesperson for the Panamanian government acknowledged his statements and indicated that a formal response would be forthcoming. Meanwhile, neighboring Nicaragua is making moves of its own, with President Daniel Ortega revealing plans for a new interoceanic waterway that could serve as an alternative to the Panama Canal. Ortega has indicated that this new canal could appeal to both Chinese and American investors.
In summary, Trump’s comments on the Panama Canal signal both a potential shift in US foreign policy and ongoing discussions around the management and economic implications of this vital maritime passage. His statement brings attention to the importance of maintaining control over significant national assets while also highlighting broader geopolitical tensions, particularly with China.
Looking ahead, this dialogue provides an opportunity for enhanced cooperation between nations in managing critical infrastructure, which could lead to more sustainable practices and improved bilateral relations. It also poses the possibility that new trade routes could emerge in response to evolving global dynamics.