A Man, A Plan, A Canal: Trump Wants US to Take Back Control of the Panama Canal

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President-elect Donald Trump has stirred international controversy with his suggestion that the Panama Canal be returned to U.S. control. Speaking at “American Fest,” Trump criticized Panama’s management of the canal, alleging unfair fees and mismanagement. He vowed swift action to demand its return once in office, reigniting debates about U.S. foreign policy and sovereignty. “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else,” Trump told the audience. He argued that Panama’s fees for transiting the canal are excessive and unfair to the U.S., given its historic role in constructing the waterway.

The Panama Canal, completed by the United States in 1914, is a vital link between the Atlantic and Pacific Oceans, significantly reducing shipping times for international traders. For 85 years, the U.S. operated the canal before transferring control to Panama on December 31, 1999, under a treaty signed by President Jimmy Carter in 1977. Trump has referred to this transfer as a “foolish giveaway,” criticizing past administrations for relinquishing control over such a strategic asset.

Panama’s Firm Response: Nope

Panama’s President José Raúl Mulino responded decisively, rejecting Trump’s claims in a video statement. “Every square meter of the Panama Canal belongs to Panama and will continue to do so,” Mulino declared. He stressed that the canal’s sovereignty is non-negotiable and that Panama operates the waterway transparently and fairly.

Mulino emphasized the canal’s growth under Panamanian management, particularly the 2016 expansion, which increased its capacity and economic significance. He described the canal’s tariffs as carefully calculated, based on operating costs, market conditions, and modernization needs. “Rates are not a whim,” Mulino explained, noting that these revenues have fueled Panama’s economic growth and contributed to global trade efficiency.

Trump’s allegations that foreign powers, particularly China, might exert control over the canal were also addressed. Mulino firmly stated, “The canal is not under direct or indirect control of China, the European Union, the United States, or any other power.” He called for mutual respect between nations and reiterated Panama’s commitment to maintaining sovereignty over its most critical infrastructure.

Trump’s Broader Sovereignty Remarks

The Panama Canal controversy is just one of several provocative statements Trump has made regarding U.S. control over foreign territories. During the same weekend, he renewed his interest in acquiring Greenland, a proposal he first floated in 2019. On Truth Social, Trump described Greenland as a strategic necessity for “national security and freedom,” citing its natural resources and Arctic location. However, Trump’s previous efforts to purchase Greenland were met with swift rejection by Denmark, which oversees the autonomous territory. His recent comments have once again sparked criticism from European leaders and raised questions about his approach to international diplomacy.

Additionally, Trump has hinted at expanding U.S. influence over Canada, further fueling concerns about his willingness to challenge global norms. While such statements are often dismissed as political theater, they highlight a recurring theme in Trump’s rhetoric: the assertion of American dominance over strategic regions.

Panama Canal: The Economic Context

Trump’s remarks about the Panama Canal also come against a backdrop of global trade challenges. The canal has faced disruptions due to drought-induced low water levels, which have limited its capacity and strained supply chains. These challenges have led to increased shipping costs, making the canal a focal point for economic debates.

Trump’s criticism of Panama’s management reflects his broader narrative of prioritizing American interests in global trade. He argued that reclaiming control of the canal would allow the U.S. to ensure fair fees and strategic stability. However, experts warn that such a move would likely escalate diplomatic tensions and disrupt international trade.

President Mulino, while open to dialogue with the incoming administration, has made it clear that Panama’s sovereignty is not up for negotiation. “We Panamanians may think differently on many issues, but when it comes to our canal and our sovereignty, we all unite under a single flag, that of Panama,” Mulino stated.

A New Era for US Foreign Policy?

Trump’s call to reclaim the Panama Canal has reignited debates about U.S. foreign policy, sovereignty, and global trade dynamics. While his supporters view the proposal as a bold step to protect American interests, critics argue that it risks undermining international relations and Panama’s sovereignty.

Do you think the U.S. should attempt to reclaim the Panama Canal for strategic purposes? Is it even possible? Tell us what you think about Trump’s latest suggestion.

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