Vinay Karanam Photo Feed: ANI YouTube Channel
The Panama Canal was significantly impacted by the 2023 Central American droughts, which forced a substantial reduction in the number of daily slots for crossing ships. This led to increased fees for shippers reserving slots. The situation normalized later in the year as weather conditions improved, but further price hikes are expected next year.
On December 22, 2024, US President-elect Donald Trump suggested that his new administration might attempt to regain control of the Panama Canal, which he claimed the United States “foolishly” ceded to Panama. Speaking at Turning Point’s annual AmericaFest in Phoenix, Arizona, Trump criticized the “ridiculous” fees charged to ships passing through the canal and expressed his dissatisfaction with the current arrangement.
Trump stated that if the principles of the “magnanimous gesture of giving” the canal to Panama were not followed, the United States would demand its return. He emphasized that he would not tolerate the current situation and urged Panamanian officials to take note.
The United States built the Panama Canal in the early 1900s to facilitate the transit of commercial and military vessels between its coasts. Control of the canal was relinquished to Panama on December 31, 1999, under a treaty signed in 1977 by President Jimmy Carter.
In response to Trump’s remarks, Panama’s President Jose Raul Mulino released a video asserting that “every square meter of the canal belongs to Panama and will continue to belong” to his country. Mulino addressed Trump’s complaints about rising fees, explaining that they are set by experts based on operational costs and supply and demand factors. He noted that Panama has expanded the canal to increase ship traffic and that the increased fees help fund these improvements.
Mulino, described as a conservative populist who aligns with Trump on many issues, emphasized that Panama is a strong US ally and that the canal is crucial for its economy, generating about one-fifth of the government’s annual revenue. He stressed that Panamanians are united in their commitment to the canal and their sovereignty.
This incident has highlighted the ongoing tensions and controversies surrounding the Panama Canal and its management, as well as the broader geopolitical implications of Trump’s remarks.
