President-elect Donald Trump has been vocal about suggesting that the United States should take over the Panama Canal unless fees for using the canal are lowered. However, Panama’s leader has made it clear that the waterway is not for sale. This is just the latest in a series of similar statements from Trump, who has also suggested taking over Greenland and joked about Canada becoming a U.S. state. The Panama Canal was built by the United States between 1904 and 1913, at a cost of $375 million, making it the most expensive construction project in U.S. history at the time. Thousands of laborers died during the grueling construction process.
The Panama Canal connects the Pacific and Atlantic Oceans, offering ships a shortcut to avoid going around the tip of South America, revolutionizing shipping traffic in the region. The U.S. acquired the rights to build and operate the canal in the early 20th century by supporting Panamanian independence in 1903. This led to the signing of a treaty that established permanent U.S. rights to a “Panama Canal Zone.” Throughout the 20th century, tensions surrounding the canal persisted, leading to negotiations for new treaties in the 1960s and ’70s. These negotiations eventually resulted in the Torrijos-Carter Treaties, signed in 1977, which transferred control of the canal to Panama in 1999.
Since 1999, the Panama Canal has been owned and operated by the Panama Canal Authority, a government-owned agency. The authority has invested billions in expanding the canal, with a $5.25 billion expansion completed in 2016, doubling the waterway’s capacity and cutting global maritime costs. About 40% of the world’s cargo ship traffic moves through the Panama Canal, with two-thirds of the traffic either headed for or leaving the United States. Between 13,000 and 14,000 ships use the canal each year. Despite the success of the canal under Panama’s ownership, President Trump has repeatedly suggested that the United States should regain ownership of the waterway due to alleged exorbitant fees and concerns about potential Chinese influence.
Trump’s comments about the Panama Canal have sparked a public clash between him and Panama’s President José Raúl Mulino. Trump has threatened to take over the canal unless certain principles are followed, while Mulino has reiterated that the canal belongs to Panama and will remain so. The two leaders have exchanged statements and responses on social media and in news conferences, with Mulino emphasizing that there is no possibility of opening any conversation about the ownership of the Panama Canal. Despite concerns about delicate issues such as immigration, Mulino maintains that the canal is Panamanian and belongs to the people of Panama, with no room for negotiation on that fact.
