Trump Calls Panama Canal Fees “Unfair” For U.S. Ships, Threatens To Take Control

Donald Trump recently made a controversial statement, by threatening to take control of the Panama Canal after criticising Panama for what he called “ridiculous” fees charged to U.S. ships passing through the waterway.

In a post on Truth Social, Trump said that the U.S. Navy and U.S. Commerce had been treated “unfairly” by Panama, accusing the country of charging excessive fees for the use of the canal.

The Panama Canal, an 82-kilometre waterway which connects the Atlantic and Pacific Oceans, is one of the most important trade routes in the world, handling about 5% of global maritime traffic.

It was originally built in the early 20th century and was under U.S. control until 1999 when it was transferred to Panama under the Torrijos-Carter Treaties.

Trump called the fees a “rip-off” during his recent speech in Arizona. He also mentioned China’s involvement in the region and said that the canal should remain under Panama’s control but without interference from any foreign powers, including China.

The Panama Canal Authority, which manages the canal, has seen significant revenue from tolls, with the canal generating nearly $5 billion generated last fiscal year.

These tolls are an important revenue source for Panama, contributing a major portion to the country’s GDP.

The fees vary depending on the size and type of vessels, but they are necessary to maintain the infrastructure and operations of the canal, which continues to require large amounts of investment to ensure safe and efficient transit for ships.

In response, Panama’s President José Raúl Mulino strongly defended Panama’s sovereignty over the canal. He said that the canal is and will remain under the control of Panama, dismissing any notion that the U.S. could reclaim control.

Mulino also pointed out that the tolls are not arbitrarily set but are essential for maintaining the canal’s operations and keeping it functional for global trade.

The Panama Canal continues to be an essential part of global trade. Ships carrying everything from consumer goods to natural gas and automobiles rely on the canal to shorten their journey.

Without it, vessels would be forced to take the longer route around South America through the Beagle Channel, Drake Passage and the Strait of Magellan, which is not only more time-consuming but also more costly.

The canal is a vital asset for global trade and Panama’s economy, with its tolls and operations carefully monitored by the Panama Canal Authority.

The Panama Canal is also designated as one of the largest and most complex engineering projects ever undertaken.

References: Reuters, Aljazeera

Source: Maritime Shipping News