President-elect Trump's recent comments about the Panama Canal have sparked a response from Panama's President José Raúl Mulino. Trump suggested that the United States should try to regain control of the canal, claiming that the country was being taken advantage of. In a video statement, President Mulino emphasized that every square meter of the canal belongs to Panama and will continue to do so.
Mulino addressed Trump's concerns about rising fees for ships crossing the canal, explaining that the tariffs are set based on operational costs and supply and demand factors. He highlighted Panama's efforts to expand the canal to accommodate increased ship traffic and stated that fee increases contribute to funding improvements.
Asserting Panama's sovereignty over the canal, Mulino stated, 'When it comes to our canal and our sovereignty, we will all unite under our Panamanian flag.' In response, Trump hinted at potential actions, posting a picture of a U.S. flag in the canal zone with the caption, 'Welcome to the United States Canal!'
The Panama Canal, originally built by the United States in the early 1900s, was handed over to Panama in 1999 under a treaty signed by President Jimmy Carter. The canal faced challenges during the 2023 Central American drought, leading to reduced daily ship crossings and increased fees for shippers reserving slots.
As weather conditions improved later in the year, canal operations returned to normal. However, price increases are anticipated for the upcoming year as the canal continues to navigate challenges and maintain its vital role in global maritime trade.
