Jakarta – Donald Trump is once again making threats. The recently elected President of the United States (US) has recently threatened to take over the management of the Panama Canal.
Trump believes that Panama is not managing the waterway in an acceptable manner. He accused the Central American country of imposing excessive fees for the use of the sea link route.
“The cost imposed by Panama is ridiculous, especially when we know the extraordinary generosity that the US has shown to Panama,” Trump wrote on his Truth Social platform, quoted by The Guardian on Monday (12/23/2024).
In that evening’s post, Trump also reminded that he would not let the canal route fall into the wrong hands. Trump also reminded about China’s potential influence on the canal, writing that the canal should not be managed by China.
Trump said the Panama Canal is a vital national asset for the US. He said the shipping route in Panama plays a very important role for trade and national security.
Panama’s President José Raúl Mulino then responded to Trump’s threat. Mulino said the transit fees for the canal were not inflated and its sovereignty could not be renegotiated.
“Every square meter of the Panama Canal and the surrounding zones are part of Panama, and will remain so,” Mulino said on Sunday in a video statement on social media platform X.
What Trump said about Panama highlights the shift in US diplomacy since he took office in January, particularly regarding the security of China and Europe.
On Friday, the Financial Times reported that Trump’s team had informed European officials that the US administration would demand NATO member countries to increase their defense spending to 5% of their GDP.
Trump’s rhetorical threat against Panama emerged 25 years after the US handed full control of the canal to Panama. In 1977, President Jimmy Carter negotiated the Torrijos-Carter Treaty, which gave Panama control over the canal and the Neutrality Treaty, which allowed the U.S. to maintain the canal’s neutrality. The canal is currently managed by the Panama Canal Authority.
The US completed the 51-mile canal through the Isthmus of Central America in 1914 and remains the canal’s largest customer, responsible for about three-quarters of the cargo that passes through it each year.
China is the second-largest customer of the canal, and a Hong Kong-based company operates two of the five ports adjacent to the canal, one on each side.
However, the prolonged drought has hindered the canal’s ability to move ships between the Atlantic and Pacific Oceans. The Panama Canal has experienced a 29% decrease in ship transits during the past fiscal year due to severe drought conditions, according to canal authorities.
From October 2023 to September 2024, only 9,944 ships passed through the canal, compared to 14,080 the previous year.
