Trump's Panama Canal Ultimatum Sparks International Dispute
US President-elect Donald Trump's surprise suggestion that the United States should retake control of the Panama Canal has been swiftly rejected by Panamanian authorities, setting off a heated row on both sides of the Atlantic. As tensions rise, regional leaders have come out strongly in support of Panama's sovereignty, warning Trump against encroaching on its independence.
The Panama Canal has been under Panamanian control for nearly two decades, following a 1977 agreement that paved the way for the handover from US control. However, Trump's recent comments suggest a renewed appetite for the US to regain control of the strategic waterway. In a statement that sparked widespread condemnation, Trump accused Panama of charging the US "exorbitant rates" to use the canal and hinted at growing Chinese influence over the waterway. The US built the canal in 1914 and controlled it until 1977, when it was handed over to Panama with the agreement that it would eventually be fully transferred to Panamanian control by 1999.
Panamanian President José Raúl Mulino responded swiftly to Trump's comments, stating that "every square meter of the canal belongs to Panama" and would continue to belong to the country. Mulino attributed the recent increase in canal fees to rising operational costs and growing demand, rather than any alleged exorbitant pricing by Panama. His stance has been echoed by Mexican President Claudia Sheinbaum, who asserted that the Panama Canal "belongs to the Panamanians, not the US." The disagreement has set off a diplomatic incident, with US President-elect Trump appearing to disregard Panama's sovereignty and territorial integrity.
As the row deepens, experts warn of potentially serious consequences for the complex relationship between the US and Latin America. The Panama Canal's strategic importance has long been a source of tension, particularly given its control of vital shipping routes between the Atlantic and Pacific Oceans. For its part, the Panamanian government remains resolute in its commitment to protecting its sovereignty, signaling a further challenging period for bilateral relations between the two nations. As Washington's new leadership seeks to assert its influence on the global stage, the high-stakes dispute over the Panama Canal serves as a stark reminder of the volatile nature of international diplomacy.