US-Panama tensions rise over Panama Canal

In a sharp diplomatic clash, U.S. President-elect Donald Trump has threatened to push for the return of the Panama Canal to American control, accusing Panama of overcharging the U.S. for its use.

U.S. President-elect Donald Trump has threatened to push for the return of the Panama Canal to American control, accusing Panama of charging exorbitant fees for its use. Speaking to supporters in Arizona, Trump expressed frustration over Panama’s management of the critical waterway, stating, "You've got to treat us fairly, and they haven't treated us fairly. If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to the United States of America in full, quickly, and without question. Not going to stand for it. So to the officials of Panama, please be guided accordingly."

Trump also emphasized the strategic importance of the canal saying, "The United States is the number one user of the Panama Canal with over 72% of all transits heading to or from U.S. ports. Think of that. So we built it; we're the ones that use it. They gave it away. Considered one of the world's, really one of the great wonders of the world, the Panama Canal opened for business 110 years ago and was built at a huge cost to the United States."

In response, Panamanian President José Raúl Mulino firmly rejected Trump’s remarks, reaffirming Panama’s sovereignty over the canal by stating, "Every square meter of the Panama Canal and its adjacent areas belong to Panama and will continue to belong to Panama. The sovereignty and independence of our country are not negotiable."

Mulino also defended the canal’s fees, which Trump had criticized as excessive, explaining, "Rates are not a whim. They are established publicly in an open hearing – considering market conditions, international competition, operating costs, and the needs of maintenance and modernization of the interoceanic waterway."

Trump’s comments have sparked a rare public diplomatic clash between the U.S. and Panama, with potential implications for their relationship moving forward. The Panama Canal remains a crucial link for global trade and U.S. military operations, making its future management a highly sensitive issue.

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