Trump threatens to regain control of the Panama Canal: President Jose Raul Mulino responds
Kyiv • UNN
Donald Trump threatens to demand the return of control over the Panama Canal if Panama does not reduce transit fees. Panamanian President Mulino said that the sovereignty of the canal is not subject to discussion.
On Saturday, US President Donald Trump criticized the situation in the Panama Canal, saying that the canal authorities are “deceiving” the US Navy. The Panamanian president made the statement in reference to “every square meter” of the country's territory.
Transmits of the UNN with reference to of the FT.
Donald Trump, the US president-elect, said on Sunday (22.12) that he would demand the return of the Panama Canal “fully, quickly and without question” if the Central American country does not reduce tariffs on transit fees.
Panamanian President Jose Raul Mulino retaliated.
I want to make it clear that every square meter of the Panama Canal and its surrounding area belongs to Panama and will continue to do so. Our country's sovereignty and independence are not subject to negotiation
Context
In a Saturday post on social media, Trump said that “we will demand that the Panama Canal be returned to us” if “the principles, both moral and legal, of the generous gesture of [US] giving back are not honored.” Trump added that control of the canal was “foolishly” given to Panama 25 years ago:
We are being cheated in the Panama Canal, as we are being cheated everywhere. The fees charged by Panama are ridiculous and very unfair.
Reference
The United States, which completed the construction of the canal 110 years ago, transferred full control to Panama in 1999, during the presidency of Bill Clinton, following a treaty concluded in 1977 by then-President Jimmy Carter.
The Panama Canal is dominated by US traffic. According to the Panama Canal Authority, nearly 75% of its cargo is shipped to or from the United States. The waterway connects the Atlantic and Pacific Oceans, allowing ships to avoid a long voyage around South America.
About $270 billion of the world's cargo passes through the canal each year, although authorities are trying to convince some shipping companies to return to the route after a drought reduced the number of ships that could use the waterway.
In 2017, Panama severed diplomatic relations with Taiwan and established relations with China. Chinese investments in infrastructure and trade zones have made Beijing an important economic partner of Panama, as a Hong Kong-based company operates two ports at the ends of the canal.
China is the second largest customer of the Panama Canal. A Chinese company based in Hong Kong controls two of the five ports near the canal.
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In his post, Trump also suggested that the Panama Canal is at risk of falling “into the wrong hands,” hinting at the possibility of China interfering in its management.
Recall
U.S. President-elect Donald Trump said last week that the EU could face tariffsif the bloc does not reduce its growing deficit with the U.S. by striking major oil and gas deals with the world's largest economy
