Wed Dec 25 03:22:41 UTC 2024: ## Trump Threatens to Seize Panama Canal, Claiming Unfair Fees

**Panama City –** President-elect Donald Trump has issued a stark warning to Panama, threatening to reclaim the Panama Canal unless the country alters its fee structure for using the waterway. Trump claims the U.S. is being unfairly treated and insists on a reversal of what he calls a “foolish” 1977 treaty that transferred control to Panama.

Experts, however, dismiss Trump’s threat as unrealistic. Unless the U.S. resorts to military action – a highly improbable scenario – there is no legal mechanism to reclaim the canal. The 1977 treaty, while transferring ownership, included a “Permanent Neutrality Treaty” ensuring U.S. involvement in maintaining the canal’s security and operation. This treaty does not, however, grant the U.S. the right to unilaterally reclaim the canal.

The canal, a crucial shipping route connecting the Atlantic and Pacific oceans, has seen increased fees recently, primarily due to last year’s drought which impacted operations and necessitated traffic restrictions. Panama maintains that the fee adjustments are necessary for ongoing maintenance and modernization projects to accommodate larger vessels.

Panamanian officials have firmly rejected Trump’s threat, asserting complete Panamanian sovereignty over the canal. President José Raúl Mulino emphasized national unity on this issue, stating that “every square meter of the canal belongs to Panama and will continue to.”

The U.S. International Trade Administration highlights the canal’s significant economic benefits for American businesses, emphasizing time and cost savings in shipping. Despite this, the Trump administration’s stance is viewed by many as counterproductive, particularly given Panama’s recent cooperation with the U.S. on issues such as counter-narcotics and immigration. Some analysts warn that escalating tensions with Panama over the canal could unnecessarily damage a strategically important relationship, especially given Panama’s growing ties with China. The threat also comes at a time when the U.S. is trying to curb illegal immigration from South America.

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