Mon Dec 23 15:07:48 UTC 2024: ## Trump Threatens Panama Canal Takeover Over “Exorbitant” Fees; Panama Rejects Claims

**PANAMA CITY** – President-elect Donald Trump has issued a thinly veiled threat to seize control of the Panama Canal, accusing Panama of charging “exorbitant” fees to US users. This strong statement has been swiftly rejected by Panama’s President José Raúl Mulino.

The Panama Canal, a vital 51-mile waterway connecting the Atlantic and Pacific Oceans, handles a significant portion of global trade, with the US accounting for approximately three-quarters of its cargo. The canal’s importance is underscored by the fact that over 40% of consumer goods traded between Northeast Asia and the US East Coast transit through it annually.

Trump’s ire stems from what he calls “ridiculous” and “complete rip-off” fees levied by the Panama Canal Authority (ACP), which has operated the canal since 1999. The ACP has cited recent droughts exacerbated by climate change, leading to reduced canal capacity and increased congestion, as a reason for increased transit fees. These fees have reached as high as $4 million for expedited passage, resulting in significant delays for some ships.

While the ACP is increasing charges further in January 2025, President Mulino insists these fees are justified and not inflated. He categorically rejected Trump’s threat, stating that “every square metre of the Panama Canal and its adjacent zones is part of Panama, and it will continue to be.”

Trump’s concerns extend beyond mere financial disagreements. He also expressed apprehension about the canal falling into the “wrong hands,” seemingly alluding to China’s presence in the region. While a Hong Kong-based Chinese company operates two of the five ports adjacent to the canal, Mulino reaffirmed Panama’s complete control over the waterway itself.

The US previously controlled the canal throughout the 20th century, a period marked by significant tension with Panama. Two treaties signed in 1977 initiated a gradual transfer of control, culminating in Panama’s full assumption of responsibility in 1999. Trump’s latest pronouncements represent a significant escalation in rhetoric and raise questions about the future relationship between the two countries regarding this crucial piece of global infrastructure.

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