On Saturday evening, December 21st, newly elected US President Trump (Trump) accused the Panamanian government of charging excessive fees for the use of the Panama Canal. He stated that if Panama does not manage the canal in an acceptable manner, the US will demand the return of control of the Panama Canal.
Trump posted on the “Truth Social” platform, saying that the Panama Canal plays a crucial role in the US economy and national security, being considered as an important national asset. The security of the Panama Canal is crucial for the rapid deployment of US commercial and naval vessels from the Atlantic to the Pacific, greatly reducing transportation time to US ports.
“Our navy and commercial ships have been treated very unfairly and unwisely. The fees charged by Panama are absurd, especially considering how generous the US has been to Panama,” Trump said.
He stated, “This outright ‘plunder’ of our country must stop immediately.”
Panama levies tariffs on ships passing through the canal. The fees vary depending on the size and purpose of the vessels, ranging from $0.50 to $300,000.
The US surpasses all other countries in the usage of the Panama Canal. Trump wrote, “The US is the largest user of the canal, with over 70% of transiting goods coming from US ports.”
According to a treaty signed in 1979 by President Jimmy Carter, control of the Panama Canal was transferred from the US to Panama in 1999, a decision Trump expressed dissatisfaction with.
In his post, Trump also seemed to warn against Chinese infiltration of the Panama Canal. He wrote on “Truth Social,” “When President Jimmy Carter gifted the canal to Panama for one dollar during his term, it was solely managed by Panama, not China (Communist China) or anyone else.”
“Similarly, Panama has not charged exorbitant fees and tolls to the US and its navy, as well as companies operating within our borders,” Trump said.
“The security, efficiency, and reliable operation of the Panama Canal are in the vested interests of the US, and we have always understood this. We will not let it fall into the hands of bad actors! It was not built for the benefit of others but as a symbol of cooperation between us and Panama,” he added.
Trump warned Panama, “If they do not comply with the moral and legal principles of this generous donation, we will demand the complete return of control of the Panama Canal, this is unquestionable.”
“Panamanian officials, please adhere to the relevant regulations!” Trump urged.
In March 24, 2022, General Laura Richardson, commander of the US Southern Command, informed the Senate Armed Services Committee that Chinese companies are increasingly involved in the construction of strategic infrastructure of maritime fortresses, such as the Panama Canal and the Strait of Magellan.
“In Asia, Africa, and the Middle East, (China) abuses commercial agreements at host-country ports to carry out military functions. We are concerned that they are trying to do the same thing in this region (Latin America) close to our homeland,” Richardson said.
She cited, “In Panama, (Chinese) companies are participating in or bidding on multiple projects related to the Panama Canal, including port operations at both ends of the canal, water resource management, and logistics parks, and the Panama Canal is a global strategic passageway.”
Construction of the Panama Canal began in 1904 when the US was under the leadership of President Theodore Roosevelt. This waterway was built to provide a fast route for freight transportation between the Atlantic and the Pacific.
It is estimated that 5% of global maritime traffic passes through the Panama Canal, enabling vessels traveling between Asia and the US East Coast to avoid the long and dangerous route around the southern tip of South America.
The main users of this route are the US, China, Japan, and South Korea.
The Panama Canal Authority reported in October of this year that the canal generated nearly $5 billion in revenue in the previous fiscal year.
(This article referenced reports from Agence France-Presse and Reuters)