Trump’s threat: What to know about Panama Canal

United States President-elect Donald Trump has sparked international debate by threatening to reclaim U.S. control over the Panama Canal, a crucial waterway for global trade.

During a speech in Arizona on Sunday, Trump accused Panama of charging exorbitant passage fees and voiced concerns about potential Chinese influence on the canal.

Addressing supporters at AmericaFest, Trump proclaimed, “Has anyone ever heard of the Panama Canal? Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”

He further warned that the canal could fall into the “wrong hands” and posted an image on Truth Social of an American flag flying above a waterway, captioned, “Welcome to the United States Canal!”

His remarks drew strong criticism from Panamanian President, José Raúl Mulino, who defended his country’s sovereignty and canal administration.

Tribune Online examines eight key facts about the Panama Canal in this article.

1. Historical Context

The Panama Canal, an artificial 82-kilometre (51-mile) waterway linking the Atlantic and Pacific Oceans, was completed in 1914 with substantial U.S. investment and engineering.

Initially controlled by the U.S., the canal was transferred to Panama in 1999 following the 1977 Torrijos-Carter Treaties.

2. Location

The Panama Canal cuts across the Isthmus of Panama at a latitude of 9° N, where the North American Continental Divide reaches one of its lowest elevations.

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3. Length

The canal spans about 40 miles (65 km) from shore to shore, with the distance from deep water in the Atlantic Ocean (specifically the Caribbean Sea) to deep water in the Pacific Ocean measuring roughly 50 miles (82 km).

4. Current Control

The Panama Canal Authority, an autonomous public agency, manages the Panama Canal. Under Panama’s constitution, the canal is declared an “inalienable heritage” of the nation.

5. Economic Significance

The canal is vital to global commerce, facilitating around 5% of world maritime trade. It contributes approximately 6% of Panama’s GDP and has added over $28 billion to the Panamanian economy since 2000.

6. User Statistics

The United States is the canal’s largest user, accounting for 74% of its cargo traffic, followed by China at 21%. The Panamanian government sets tolls based on demand and operational requirements.

7. Operational Challenges

The canal relies on a system of locks and freshwater reservoirs. Recent droughts have strained these resources, resulting in traffic restrictions and higher tolls.

8. Trump’s Claims

Trump has criticised the tolls imposed by Panama, describing them as unfair. He has also raised alarms about China’s growing influence in the region. However, Panama’s president has rejected any assertions of foreign control over the canal.

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