Former President Donald Trump’s recent statements about reclaiming control of the Panama Canal have ignited a firestorm of debate, raising questions about international agreements and America’s economic interests.
At a Glance
- Trump criticized Panama’s high canal tolls, threatening to reclaim ownership if fees aren’t lowered
- He accused Panama of unfairly charging U.S. ships up to $500,000 for passage
- Trump expressed concerns about Chinese influence near the canal
- The U.S. is the largest user of the Panama Canal, accounting for 75% of cargo transit
- Analysts doubt the legality of the U.S. retaking control under existing treaties
Trump’s Critique of Panama Canal Management
Former President Donald Trump has sparked controversy by criticizing Panama’s management of the Panama Canal, particularly focusing on what he perceives as excessively high tolls imposed on U.S. ships. Trump’s statements have reignited discussions about the canal’s strategic importance to the United States and its economic interests.
Trump’s main contention revolves around the fees charged for passage through the canal. He claims that U.S. vessels are being unfairly burdened with high costs, with fees reaching up to $500,000 for the largest ships. This situation, according to Trump, is detrimental to U.S. economic interests and contradicts the spirit of cooperation that led to the canal’s transfer to Panamanian control.
Donald Trump said the Panama Canal is charging “exorbitant prices and rates of passage” on US naval and merchant ships, and he demanded that fees be lowered or else Panama should return the canal to the US https://t.co/O02HyQNXFU
— Bloomberg Markets (@markets) December 22, 2024
Threats of Reclaiming Ownership
In a bold statement that has caught international attention, Trump suggested that if Panama does not lower the tolls, the United States should consider reclaiming ownership of the canal. This proposal has raised eyebrows and sparked debates about the feasibility and legality of such an action under existing international agreements.
“The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security. A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports,” Trump said.
Trump’s critique extends to the 1977 Panama Canal Treaty, negotiated during former President Jimmy Carter’s administration, which ended U.S. control of the canal by 1999. Trump argues that this decision was shortsighted and has led to the current situation where U.S. interests are not adequately protected.
Economic and Strategic Concerns
The Panama Canal’s importance to the U.S. economy cannot be overstated. As the largest customer of the canal, the United States accounts for approximately 75% of the cargo transiting through it annually. This reliance on the waterway makes any changes in its management or fee structure a matter of significant concern for U.S. policymakers and businesses.
“Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete ‘rip-off’ of our Country will immediately stop,” Trump said.
Adding to the complexity of the situation are concerns about foreign influence around the canal. Trump has specifically highlighted worries about Chinese presence, noting that a Hong Kong-based Chinese company controls two ports near the canal. This raises questions about national security and the strategic implications of foreign involvement in such a crucial maritime passage.
