Trump’s comments to be linked to concerns about China’s growing influence in global trade and strategic infrastructure
US President-elect Donald Trump, ahead of his White House return, has been making back-to-back announcements that highlight his economic vision for America. After announcing a possible increase in trade tariffs with countries like China and Canada, Trump is now threatening to regain control over the Panama Canal, an important waterway trade route bridging the Atlantic Ocean and the Pacific Ocean.
Trump’s threats
The file of the strategic canal linking the Atlantic and Pacific oceans, and appeared, on the other hand, to be a possible sign of the expected shift in US diplomacy under the Republican president.
Trump, who will enter the White House on January 20, threatened that if Panama does not manage the canal in an acceptable manner, he will demand that the US-allied country hand it over and return it to US sovereignty.
The “wrong hands,”
In a post on his Truth Social social media site, Trump also warned that he would not allow the canal to fall into the “wrong hands,” appearing to warn of potential Chinese influence over the important waterway.
US is the primary user of the canal
Trump said the Panama Canal is a vital national asset of the United States, due to its critical role in the American economy and national security.He pointed out that the United States is the primary user of the canal, with more than 70% of transits heading to or from American ports.
Built at a huge cost to USA
He added that it is considered one of the wonders of the modern world, and was opened for operation 110 years ago, and was built at a huge cost to the United States in terms of lives and money, as 38 thousand Americans died during the construction process.
He believed that Panama could not impose exorbitant transit fees on the United States, its naval forces and its companies.
Theft of our country
“Our Navy and Commerce have been treated very unfairly and unwisely,” Trump continued. “The tariffs imposed by Panama are ridiculous, especially considering the extraordinary generosity the United States has shown Panama. This complete theft of our country will stop immediately.”
Safe, efficient and reliable operation of the canal
He stressed that the United States has a vested interest in the safe, efficient and reliable operation of the canal, continuing: “We will never let it fall into the wrong hands (…) and if the moral and legal principles of this generous gesture of giving are not followed, we will demand that the Panama Canal be returned to us in full, without a doubt.”
China’s growing influence
Trump’s comments appear to be linked to concerns about China’s growing influence in global trade and strategic infrastructure, Politico reported, even though no Chinese entity currently directly manages the Panama Canal or controls its operations.
Beijing has significantly increased its presence
Beijing has significantly increased its presence in Latin America over the past two decades, through investments in ports, infrastructure projects and trade agreements, and a Hong Kong-based company runs the two main ports on either side of the Panama Canal, Balbo on the Pacific side and Cristobal on the Atlantic side.
Dissuade China from any planned expansion
According to Politico, Beijing has not given any public indication that it is taking any step to buy the canal or expand its influence over its operations. Trump’s statements may have been preemptive, to try to dissuade China from any planned expansion in Latin America.
US is the canal’s biggest customer
Panama’s recent political shift, with the election of José Raúl Molino as president months ago, also plays into Washington’s hands. Molino has pledged to strengthen ties with the United States, signaling a possible shift in Panama’s foreign policy toward greater alignment with American interests.
The US is the canal’s biggest customer, responsible for about three-quarters of the cargo moving through it each year, while China is the second-biggest customer.
China had no influence on the canal’s administration.
Panama’s President Jose Raul Mulino said his country’s independence was non-negotiable and that China had no influence on the canal’s administration.
China does not control the canal but a subsidiary of Hong Kong-based CK Hutchison Holdings has long managed two ports at the canal’s Caribbean and Pacific entrances.
“Every square metre of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama),” Mr Mulino said in his statement, which was released on social media.
Mr Trump then responded: “We’ll see about that!”.
An interesting history
The United States took responsibility for building the canal at the beginning of the twentieth century, under former President Theodore Roosevelt, and took over the management of the area surrounding the passage for decades.
Washington signed a treaty in 1903 with the then newly independent nation of Panama, allowing it to develop the canal project that had been desperately needed for years to connect the Pacific Ocean with the Atlantic Ocean.
The treaty required Washington to pay Panama
The treaty required Washington to pay Panama from the revenues generated by the canal, and in return the United States would guarantee the neutrality of the canal and control of the lands on either side of the waterway by the Panamanian government.
This area, known as the Panama Canal Zone, was administered by the United States and United States law applied to the residents of the area.
But, after decades of tensions, the administration of Democratic President Jimmy Carter signed two treaties in 1977 with Panama’s de facto ruler, Omar Torrijos, transferring control of the vital shipping lane to Panama.
Under the terms of the two treaties
Under the terms of the two treaties, Panama gained control of the canal in 1999, while the United States retained the right to defend it from any threat to its neutrality.Commenting on this, Trump said in a post that Carter had “foolishly” given up the Panama Canal during his term in office, but that the concession “was to Panama alone, not China, or anyone else,” as he put it.
Panama Canal
The canal is a major waterway connecting the Atlantic and Pacific oceans, allowing sea travellers to avoid an additional 7,000 nautical miles (13,000km) around the tip of South America.
The 51-mile (82km) canal cuts through the middle of Panama, a country occupying the strip of land between Central America and South America.
The Panama Canal Authority, for 25 years.
In the year to 30 September, almost 10,000 ships passed through the canal, carrying 423m tons, including food, minerals and factory-made products. More than 40% of consumer goods traded last year between north-east Asia and the US east coast were transported through the canal.
The government of Panama has owned and operated the canal through a dedicated agency, the Panama Canal Authority, for 25 years.
The question :It’s not clear how Mr Trump would go about reasserting US control over the canal.?
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