President-elect Donald Trump Threatens to Reassert U.S. Control Over the Panama Canal
President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal on Sunday, accusing Panama of charging excessive rates to use the Central American passage. Trump made the comments to a crowd of supporters in Arizona, saying that the U.S. was “being ripped off” by Panama’s fees and warning of potential Chinese influence on the passage.
Trump’s comments were met with a sharp rebuke from Panamanian President Jose Raul Mulino, who defended the passage rates and denied any Chinese influence on the canal’s administration. The U.S. and Panama signed a pair of accords in 1977, paving the way for the canal’s return to full Panamanian control, and the U.S. handed over control in 1999.
The Panama Canal is a critical waterway, allowing up to 14,000 ships to cross per year and accounting for 2.5% of global seaborne trade. It is also important for U.S. imports and exports, including autos, commercial goods, and liquefied natural gas.
Trump’s threat to reassert U.S. control over the canal was seen as an example of an expected shift in U.S. diplomacy under his administration, which has not traditionally shied away from using bellicose rhetoric when dealing with adversaries. Additionally, Trump repeated his idea of potentially buying Greenland, an autonomous territory of Denmark, which was previously scrapped after he was publicly rebuffed by Danish authorities.
