Trump questions Panama Canal ownership, draws global attention

The Panama Canal, vital to global trade, becomes a focal point of Trump’s contentious foreign policy rhetoric

WEST PALM BEACH, FLORIDA:

President-elect Donald Trump, on Sunday, suggested reclaiming US control of the Panama Canal, accusing Panama of imposing excessive fees for its use. The statement prompted a strong response from Panamanian President Jose Raul Mulino.

Addressing supporters in Arizona, Trump expressed concerns about potential Chinese influence over the canal, declaring he would not allow it to fall into "the wrong hands." Following the event, he posted on Truth Social, sharing an image of an American flag over a narrow waterway with the caption, "Welcome to the United States Canal!"

During his speech at AmericaFest, an annual conservative gathering, Trump accused Panama of exploiting the United States with its canal fees. "We’re being ripped off at the Panama Canal, just like everywhere else," he remarked. His comments marked a rare instance of a U.S. leader hinting at pressuring a sovereign nation to relinquish control over its territory. They also indicated a potential shift in U.S. foreign policy, reflecting Trump’s penchant for confrontational rhetoric.

The canal, constructed and managed by the US for much of the 20th century, was transferred to Panama under the terms of 1977 treaties.

Full Panamanian control was established in 1999 after a transitional period of joint administration. Trump suggested that the handover had conditions. "If the moral and legal principles of this generous gesture are not upheld, we will demand the Panama Canal be returned to us promptly and without question," he asserted.

President Mulino responded via a recorded message, firmly stating that Panama’s sovereignty was non-negotiable and denying Chinese influence over the canal's administration.

He defended Panama’s toll rates, emphasising they were not arbitrarily set. While Chinese companies operate ports at both canal entrances, the canal itself remains under Panamanian control.

Mulino reaffirmed Panama's ownership: "Every square metre of the Panama Canal and its surrounding areas belongs to Panama and will continue to do so." The statement, shared on X, was met with Trump’s retort: "We'll see about that!"

The Panama Canal, critical to global trade, facilitates the passage of 14,000 ships annually, accounting for 2.5% of global maritime trade.

It is vital for US imports from Asia and exports of commodities like liquefied natural gas. Despite Trump’s remarks, there is no clear indication of how he might attempt to regain control of the canal, and such a move would lack support under international law.

This is not Trump’s first suggestion of territorial expansion. In recent weeks, he has mused about integrating Canada as a US state. During his presidency from 2017 to 2021, he expressed interest in purchasing Greenland, a Danish autonomous territory, but the proposal was swiftly rejected by Danish officials.