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Politics
23 December 2024

Trump Demands Lower Transit Fees At Panama Canal

The next U.S. President threatens to reclaim control if Panama does not comply with fee reduction demands.

Donald Trump, the next U.S. President, has ignited controversy over the transit fees charged by the Panama Canal, calling them exorbitant and unjust during remarks at a conservative rally on October 22. He asserted emphatically, "The fees charged by Panama are ridiculous. Based on our extraordinary generosity shown to Panama, it is especially so." Not only does Trump want the fees lowered, but he openly threatened to reclaim management of the canal if his demands go unaddressed.

Speaking to his supporters gathered at the rally in Phoenix, Arizona, Trump characterized the current fee structure as unfair, particularly to U.S. naval and commercial vessels. He argued, "This complete 'rip-off' against our country will immediately stop." His strong words reflect broader dissatisfaction with U.S. treatment under foreign management of the national waterway, which was handed over to Panama following the 1999 agreement. Trump contended, "If the principle of generosity is not morally and legally upheld, we demand the Panama Canal to be fully returned without any objections." This echoes questions of sovereignty and fairness, harking back to the lengthy history of U.S. involvement with the canal.

The Panama Canal, which connects the Pacific and Atlantic Oceans, has been historically significant for the United States. The U.S. constructed the canal and maintained control until it was returned to Panama under the 1977 Carter-Torrijos Treaties. Today, the U.S. remains the canal's largest customer, accounting for around 75% of transit cargo. There’s no denying the economic importance of this passageway, as experts have indicated its link to supply chain issues exacerbated by global inflation. The recent prolonged drought has also heightened challenges to shipping routes, making Trump's criticism more timely and poignant.

Trump's focus on reducing fees ties back to his broader economic themes, where he paints domestic industries needing protection from foreign exploitation. He also expressed concern over the increasing Chinese involvement with the canal, delineated by the claim of Chinese companies operating some adjacent ports. He remarked, "This is not meant for another country but is only meant to show cooperation between the United States and Panama." This hints at fears of the canal falling under improper oversight, framing it as almost material for national security discussions.

The response from the Panama Canal Authority was muted, with officials reportedly aware of Trump’s statements. Requests for comments from the Panama Embassy have gone unanswered, resting on the hope of addressing these demands diplomatically. With domestic and international audiences listening closely to Trump’s rhetoric, his threats to revert control could present significant challenges to U.S.-Panama relations.

Looking forward, Trump's fiery demands could redefine discourse around the canal, testing the boundaries of international agreements made prior. His insistence on the return of the canal without negotiations holds weight among his supporters, who express frustration about what they perceive as unfair American treatment abroad.

If tensions escalate over management and fees, the discussions may evolve from mere rhetoric to real negotiations between nations, with potential repercussions concerning business and security for both countries. While Trump's administration is positioned to promote American interests, the historical legacy of the Panama Canal complicates these sentiments, blending practical economic measures with national pride.

Trump's statements signal his readiness to challenge the status quo concerning international agreements, showcasing his doctrine of prioritizing U.S. interests above all. The dialogue around the Panama Canal may well reflect broader themes of America confronting challenges posed by global dynamics of power.