President-elect Donald Trump has threatened to have the U.S. reassert control of the Panama Canal amid accusations that Panama is charging excessive rates for using the waterway.
Speaking Sunday in Arizona, Trump also said he would not let the canal fall into the “wrong hands,” warning of potential Chinese influence in Panama, Reuters reported.
“Has anyone ever heard of the Panama Canal?” Trump said at AmericaFest, an annual event organized by Turning Point, an allied conservative group. “Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”
Trump’s statements were denounced by Panamanian President Jose Raul Mulino, who said that his country would remain independent and that China was not influencing Panama. He also said market conditions were used to set passage rates.
What is the Panama Canal?
51-mile-long passageway between the Atlantic and Pacific oceans. It’s in the middle of Panama, between Central and South America. The U.S. is the canal’s biggest customer, the Guardian says.
Instead of sailing around the southern tip of South America, commercial shippers and naval forces use the canal as a shortcut between oceans. Ships traveling between the east and west coasts of the U.S. save about 8,000 nautical miles.
was completed in 1914. The canal was expanded in 2016.
The canal has system of locks that allow ships to travel across Panama. It operates 24 hours a day every day of the year. Nearly 14,000 ships a year, including commercial shipping and the U.S. Navy, use the waterway.
treaty signed by President Jimmy Carter in 1977 transferred the canal to Panamanian control in 1999.
The Panamanian government controls the canal through the Panama Canal Authority, an 11-member board that oversees the canal’s maintenance and security.
account market conditions, international competition, operating costs and the maintenance and modernization needs of the interoceanic route,” the Hill reported.
What countries use the canal the most?
75% of its traffic in fiscal year 2024, according to pancanal.com. That’s an increase from 66% in 2019, according to Center for Strategic & International Studies.
China and Japan are second and third, respectively.
SOURCE USA TODAY Network reporting and research; Reuters; pancanal.com; porteconomicsmanagement.org; marineinsight.co.
