President-elect Donald Trump recently took to social media to express his concerns over the fees charged by Panama for passage through the Panama Canal. Trump accused Panama of imposing 'exorbitant' rates and hinted at the possibility of reassuming control of the critical waterway.
Trump highlighted the historical context of the Panama Canal, emphasizing the role of the United States in its construction during President Teddy Roosevelt's administration. The canal, a vital global transit point connecting the Pacific and Atlantic Oceans, was under US control until a series of treaties initiated its transfer to Panama, completed in 1999.
Trump's posts also alluded to the growing Chinese influence in the region, pointing out that China has become the second biggest user of the canal and a significant source of transported products. He raised concerns about the implications of Panama's decision to establish diplomatic ties with China in 2017, following the severance of relations with Taiwan.
While acknowledging the importance of a secure and efficient operation of the waterway under the existing agreement between the US and Panama, Trump warned of potential action if he perceives a deviation from the terms of the agreement. He underscored the US's right to defend the neutrality of the canal as outlined in the Neutrality Treaty ratified by the US Senate in 1978.
Analysts suggest that the increasing Chinese business presence in the region necessitates a strategic response from the US to reinforce its interests in Panama and around the Canal. The situation underscores the complex geopolitical dynamics at play in the region and the significance of the Panama Canal as a strategic asset.
