UNITED STATES president-elect Donald Trump has issued a warning that the United States may demand possession of the Panama Canal if a set of conditions is not followed.
The president-elect criticised the canal fees as “ridiculous”, asserting that the “complete rip-off” must stop immediately.
Mr Trump highlighted the canal, one of the Seven Wonders of the Modern World, as a vital national asset for the US and crucial for both its commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific oceans.
The US is the primary user of the canal, with the country the origin or destination for over 70 percent of vessels transiting the canal. The second largest user was China, with approximately 22 percent.
“The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal, and that was always understood,” president-elect Trump said in a dual-post made on social media platform Truth Social.
“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. To the Officials of Panama, please be guided accordingly!”
The publicly-made warning drew the reproach of Panamanian President José Raúl Mulino, who released an official statement on his X account in response.
“I want to express precisely that every square meter of the Panama Canal and its adjacent area belong to Panama, and continue to be,” the President said, “The sovereignty and independence of our country are not negotiable”.
“Since it has been in Panamanian hands, the Canal has grown. It is managed by qualified professionals who, with clear rules, are responsible for its operation, conservation and maintenance, ensuring its safe, continiuous, efficient and profitable operation.
“Rates are not a whim. They are and will be established, publicly and in an open audience, considering market conditions, international competition, operating costs and the maintenance and modernization needs of the interoceanic waterway”.
President Mulino cited the Torrijos-Carter Treaties, signed in 1977 between then-US President Jimmy Carter and Panama’s de facto leader at the time, Omar Torrijos, which granted Panama control of the Canal in 1999, under the condition of the permanent neutrality of the Canal.
Mr Trump criticised the handing over of the Canal, “When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else”.
“It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage.”
The waterway, which allows up to 14,000 ships to cross per year, reportedly accounts for 2.5% of global seaborne trade.
Whilst China does not control or administer the canal, overseas media reported that a subsidiary of Hong Kong-based CK Hutchison Holdings, has long managed two ports located on the canal’s Caribbean and Pacific entrances.
