The 47th President of the United States of America, Donald Trump, spoke about his foreign policy plans in his inauguration speech and promised to return the Panama Canal to the United States.
In his speech, Trump noted that the Panama Canal was built by the US in the 1900s, and was eventually given to Panama in 1977 under a treaty that guaranteed the canal’s neutrality, but that it was a “foolish gift” and should never have been made.
Trump has accused Panama of breaking conditions of the 1999 treaty, that handed the strategic waterway to Panama. In addition, according to the newly elected president of the USA, Panama has completely transferred the operation of the canal to China. “First of all, China controls the Panama Canal. We did not hand it over to China. We gave the canal to Panama, and now we are taking it back“, – said Trump.
The Panama Canal is one of the most important trade routes of the United States. About 5% of global maritime trade passes through the 51-mile-long Panama Canal. Also, thanks to the Panama Canal, about 40% of all US container ships pass through the waters of the Atlantic and Pacific oceans. Therefore, it has strategic importance for the USA.
Trump also emphasized that American ships have to pay extremely high taxes and are treated unfairly in every way, including the US Navy.
Last week, Marco Rubio, Trump’s nominee for secretary of state, told the Senate that Trump’s concerns about this issue were very legitimate because Chinese companies control both ends of the Panama Canal, and if a conflict were to arise, the Chinese could easily demand the closure of the Panama Canal and do not let the United States go through it. This is a big challenge for both economic and national defense and security.
Hong Kong’s Hutchison Whampoa operates two ports – Balboa Port, which operates on the Pacific side, and Cristobal Port, which operates on the Atlantic side.
President of Panama Jose Raul Molino responded to Trump’s statement by completely denying the accusation. In a post published on X, Mulino also touched on historical narratives, noting that the transfer of control of the canal to Panama under the 1977 agreement was not a gift but the result of a generational struggle that culminated in 1999. He also noted: “There is not a single nation in the world that interferes with our administration.” He promised that Trump would not be able to implement his plan and that the main trade route would remain in the hands of Panama.
