[President-elect Donald Trump suggests US should retake Panama Canal, an idea rejected by Panama
President-elect Donald Trump over the weekend suggested that the US should retake the Panama Canal, an idea immediately rejected by the government of Panama, which has controlled the passage for decades.
In social media posts and remarks to supporters, Trump accused Panama of charging the US “exorbitant rates” to use the canal and hinted at growing Chinese influence over the crucial waterway. “The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Trump wrote on Truth Social on Saturday.
The US-built canal was opened in 1914 and controlled by the United States until a 1977 agreement provided for its eventual handover to Panama. The canal was jointly operated by both countries until the Panamanian government retained full control after 1999.
Speaking to a crowd of young conservatives in Phoenix on Sunday, Trump said that if the spirit of that agreement is not followed, “then we will demand that the Panama Canal be returned to the United States. So, to the officials of Panama, please be guided accordingly.”
Not everyone agrees with Trump’s suggestion. Panamanian President José Raúl Mulino retorted that “every square meter of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be.” He added, “The sovereignty and independence of our country are not negotiable.”
The history of the canal dates back to the early 20th century, when President Theodore Roosevelt made the completion of a passageway a priority. The territory was at the time controlled by the Republic of Colombia, but a US-supported revolt led to the separation of Panama and Colombia and the formation of the Republic of Panama in 1903. The US and the newly formed republic signed a treaty that year that gave the US control over a 10-mile strip of land to build the canal in exchange for financial reimbursement.
But the relationship between the US and Panama slowly disintegrated over disagreements about control over the canal, treatment of Panamanian workers, and questions about whether the US and Panamanian flags should be flown jointly over the Canal Zone. Tensions reached a peak in 1964, when anti-American riots led to several deaths in the Canal Zone and the brief severing of diplomatic relations between the two countries.
In 1976, then-presidential candidate Ronald Reagan said that “the people of the United States are the rightful owners of the Canal Zone.” The US and Panama finally agreed on a treaty in 1977, which provided for the eventual handover of the canal to Panama. The US and Panama also signed a 1977 treaty that declared the canal neutral and open to all vessels, and provided for joint US-Panamanian control of the territory until the end of 1999, when Panama would be given full control.
However, even after Panama retained full control, the US still has certain privileges. The US built the canal, and the US has historically had significant influence over the waterway. Trump’s suggestion to retake the canal is the latest in a long history of US attempts to exert control over the region.
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