Trump says US could demand Panama Canal’s return | REUTERS

Summary

President-elect Donald Trump criticized Panama for allegedly charging excessive rates for the use of the Panama Canal and hinted at reasserting U.S. control over the waterway. Trump emphasized the importance of maintaining U.S. interests and warned against allowing the canal to fall into foreign hands, particularly China. He reiterated his stance on sovereignty, threatening to demand the canal's return to the U.S. if the moral and legal principles behind its transfer were not upheld. Panama’s President reaffirmed the country's sovereignty, rejecting any claims over the canal.

Takeaways

• 😀 Trump accused Panama of overcharging the US for the use of the Panama Canal.
• 😀 Trump stated that if Panama does not adhere to moral and legal principles, the US could demand the canal's return in full, quickly and without question.
• 😀 Trump's comments came after he made a similar statement on Truth Social, threatening Panama regarding the canal's management.
• 😀 Trump expressed concerns about the Panama Canal falling into 'the wrong hands,' specifically referencing China.
• 😀 While China does not control the canal, a subsidiary of Hong Kong-based CK Hutchinson Holdings has managed two key ports on the canal's entrances.
• 😀 Panama's President reaffirmed the country’s sovereignty over the Panama Canal, emphasizing that it is non-negotiable.
• 😀 The US originally built and administered the Panama Canal, relinquishing control to Panama in 1999 after the 1977 accords.
• 😀 The Panama Canal accounts for 2.5% of global seaborne trade, making it crucial for US imports and exports, especially from Asia.
• 😀 Trump’s comments represent a shift in US diplomacy, with him known for using strong rhetoric and threatening allies.
• 😀 The issue of control over the canal underscores broader geopolitical concerns, particularly with China’s involvement in managing infrastructure around the canal.

Q & A

What did Donald Trump claim about the Panama Canal during his speech at America Fest?

Donald Trump claimed that the US was being 'ripped off' by Panama, accusing the country of charging excessive rates to use the Panama Canal. He suggested that the US could reassert control over the canal if Panama did not follow the moral and legal principles of the agreement.

What was Trump's threat regarding the Panama Canal?

Trump threatened that if Panama did not adhere to the principles of fairness, the US would demand the full return of the Panama Canal to American control, quickly and without question.

What event did Trump make these comments at, and what was its significance?

Trump made these comments at America Fest, an annual event organized by Turning Point, a conservative group. The event is significant for showcasing Trump's views and his interactions with conservative political figures and groups.

How did Panama's president respond to Trump's comments?

Panamanian President José Luis Rodríguez reaffirmed Panama's sovereignty over the canal, stating that Panama's sovereignty and independence are non-negotiable. His response was delivered in a recorded statement on the social media platform X.

When did the US officially hand over control of the Panama Canal to Panama?

The US officially handed over control of the Panama Canal to Panama in 1999 following the signing of the Panama Canal Treaty in 1977, which laid the groundwork for the transfer.

What strategic importance does the Panama Canal have for the United States?

The Panama Canal is critical for US imports of automobiles and commercial goods from Asia, as well as exports of commodities such as liquefied natural gas. The canal accounts for 2.5% of global seaborne trade.

What concerns did Trump express regarding foreign control of the Panama Canal?

Trump expressed concerns that the Panama Canal could fall into 'the wrong hands,' specifically referring to China. He emphasized that the canal should be solely managed by Panama and not by China or any other country.

Does China control or manage the Panama Canal?

No, China does not control or manage the Panama Canal. However, a subsidiary of Hong Kong-based CK Hutchison Holdings has managed two ports at the Caribbean and Pacific entrances to the canal for many years.

How might Trump's comments signal a shift in US foreign policy?

Trump's comments could signal a shift in US diplomacy by suggesting a more aggressive stance in dealing with foreign countries and possibly threatening allies or partners, as seen in his rhetoric about the Panama Canal.

What makes Trump's comments about the Panama Canal particularly rare in US political history?

Trump's comments are rare because they represent a US leader directly threatening a sovereign country to return territory, which is an unusual and extreme form of diplomacy in modern US foreign policy.