Donald Trump has promised to “take back” the Panama Canal, saying the United States “foolishly” handed it over to the Central American country.
During his speech at his inauguration In Washington DC, the new president said that American ships using the important waterway, including those of the US Navy, were being “severely overloaded and not treated fairly.”
In response, PanamaPresident José Raúl Mulino said in X that the channel “is and will continue to be Panamanian.”
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The late US President Jimmy Carter signed the transfer of the canal to Panama during his presidency in the 1970s.
Trump stated in his speech that his rival China was operating the canal and that “we didn’t give it to China, we gave it to Panama and we are going to get it back.”
The Panama Ports Firm, controlled by Hong Kong-based CK Hutchinson Holdings, has long managed two ports near the canal’s entrances.
Panamanian authorities have initiated an audit of the Panama Ports Firm, coinciding with Trump’s threats.
Trump also said of the channel: “We have been treated very badly for this foolish gift that should never have been given. And the promise that Panama made to us has been broken.”
“The purpose of our agreement and the spirit of our treaty have been totally violated,” he said.
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The canal, located on the outskirts of the capital, Panama City, is one of the busiest commercial passageways in the world.
It is a 51-mile synthetic waterway that connects the Pacific and Atlantic oceans through Panama, saving ships thousands of miles and weeks of travel around the southern tip of South America.
In 1977, Carter signed a treaty with Panamanian military leader Omar Torrijos that granted Panama free management over the canal and guaranteed permanent neutrality of the waterway.
This came into effect on December 31, 1999. Since then, the canal has been managed by the Panama Canal Authority of the Panamanian government and remains a key source of revenue for the country.
Last month, Mr. Trump threatened to reimpose American managementciting what it said were excessive fees for using the channel and a risk of Chinese influence.
“It was given to Panama and the people of Panama, but it has provisions,” Trump said of the canal at the time.
“If the principles, both moral and legal, of this magnanimous gesture of donation are not followed, then we will demand that the Panama Canal be returned to us, in its entirety, quickly and without question.”
