Trade Relations Trump threatens to reclaim the Panama Canal






The US President-elect is calling for preferential treatment with regard to one of the world’s most important trade routes. He threatens consequences if this doesn’t happen.

US President-elect Donald Trump has threatened to reclaim control of the Panama Canal under certain circumstances. “Has anyone here ever heard of the Panama Canal?” the Republican asked the audience at a right-wing conservative conference in the state of Arizona. “Because at the Panama Canal we are being ripped off, like everywhere else.”

Trump demands: USA must be “treated fairly”.

Trump criticized that the canal was once built “at enormous cost to the United States” and then “foolishly given away” by President Jimmy Carter (1977-1981). He described the transit fees charged by Panama as “ridiculous and highly unfair.”

If the U.S. were not treated “fairly” and the “principles of this generous gesture of giving were not followed,” the U.S. would demand that the Panama Canal be returned to the United States of America “in full, expeditiously and without question,” it said Trump. The day before, Trump had made this demand on his Truth Social platform.

Immediate objection from Panama

In a video address to his nation, Panama’s President, José Raúl Mulino, rejected Trump’s comments – without mentioning the US president-elect by name. “Every square meter of the Panama Canal and adjacent territory belongs to Panama and will continue to do so,” Mulino said. “The sovereignty and independence of our country are non-negotiable.”

The canal connects the Atlantic with the Pacific and is one of the most important trade routes in the world. The USA carried out the construction of the large-scale project at the beginning of the 20th century – they then controlled the area for decades. Then control was gradually handed over to Panama.

The USA has no special rights with the Panama Canal

The fees charged by Panama are considered market rates as they are based on the size and tonnage of ships passing through. There are no provisions that – as Trump demands – guarantee the USA preferential treatment simply because of its historical role as a builder.

“The fees are not arbitrary,” emphasized Mulino. “They will be determined in a public manner and through public consultation.”

Greenland once piqued Trump’s interest

During his first term in office, Trump actually seriously vied for the territory of another country. In the summer of 2019, he proposed buying Greenland and annexing it to the USA. The answer from Denmark, to which the world’s largest island belongs politically, was clear: No, thank you.

  • Donald Trump

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