Demands were issued by President-elect Donald Trump for Panama to reduce fees on the Panama Canal or return it to U.S. control, with accusations made against the Central American nation for imposing “exorbitant prices” on American shipping and naval vessels.
The fees charged by Panama were labeled as “ridiculous” and “highly unfair” by Trump during a rally in Arizona on Sunday. It was declared that such practices would be halted immediately upon his assumption of office next month.
A swift rebuke was issued by Panama’s President José Raúl Mulino, who asserted that “every square metre” of the canal and its surrounding territory belongs to Panama. It was stated unequivocally that the country’s sovereignty and independence remain non-negotiable.
Trump’s remarks were made to supporters of Turning Point USA, a conservative activist group credited with providing substantial backing for his 2024 election campaign.
A suggestion that Panama might be pressured into relinquishing control of its canal territory was described as rare for a U.S. leader. The lack of explanation regarding how such an outcome might be achieved has raised questions about the direction American foreign policy and diplomacy might take following Trump’s inauguration on 20 January.
A previous statement had referred to the Panama Canal as a “vital national asset” for the United States. Threats were later made that, if shipping rates were not lowered, demands for the canal to be returned “in full, quickly, and without question” would be issued.
The 51-mile (82-km) canal, recognized as the primary link between the Atlantic and Pacific Oceans, has been at the center of this escalating controversy.
Global Reactions
Panama’s government has not yet formally responded to Trump’s remarks, but analysts warn that any attempt to reclaim the canal would be viewed as a violation of international agreements and could strain U.S.-Latin America relations. Critics argue that such rhetoric undermines U.S. commitments to respecting the sovereignty of other nations.
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