Panama Canal: Why Trump dey threaten to try to regain control of am and wetin e be?

Where this image originates from: Getty Images/Panama Canal Authority.

December 23, 2024, 11:05 AM WAT

New Information: 35 Minutes Have Passed

The elected President of the United States, Donald Trump, has requested Panama to lower the fees for the Panama Canal or to consider handing it back to U.S. control.

Trump claims that Panama is charging fees that are excessively 'unfair' and demands that the country put an end to it.

President-elect Trump spoke in Arizona on Sunday, where he addressed supporters of Turning Point USA, a conservative activist organization that has played a crucial role in backing his campaign for the 2024 election.

Trump has announced that when he takes office next month, he will take steps regarding the Panama Canal.

This statement from Trump didn't sit well with the president of Panama, who emphasized that his country is independent and that nothing can change that.

President José Raúl Mulino stated that "every square meter" of the canal and its surrounding region is the property of his country.

President Mulino emphasized that Panama's sovereignty and independence are not up for discussion.

This comment from Trump is quite unusual for a U.S. leader, as it suggests that he believes it's acceptable to pressure a nation into giving up land.

While it doesn't specify how the takeover will occur, it indicates that American foreign policy and diplomacy are likely to change once he enters the White House following his inauguration on January 20, 2025.

Why Is Trump Threatening To Regain Power?

Due to the elevated shipping costs that Trump alleges Panama is charging for the Canal, he has threatened to take back control of it.

If shipping rates don't decrease, Trump stated, "we will insist that they return the Panama Canal to us entirely, swiftly, and without question."

They are also accusing Central American countries of charging "excessive fees" to American shipping and naval vessels.

"The charges in Panama are completely outrageous and extremely unfair," he stated.

"This total exploitation of our nation needs to end right away."

What Is The Panama Canal?

The 51-mile (82 km) Panama Canal traverses the central part of the country and serves as the primary connection between the Atlantic and Pacific Oceans.

They constructed it in the early 1900s, and the United States held power over the canal zone until 1977, when treaties began to return the land to Panama.

After a period of shared management, Panama assumed complete control in 1999.

Each year, about 14,000 ships travel through the canal, including container ships that transport cars, natural gas, and various other products, as well as military ships.

Unlike the Suez Canal, the Panama Canal depends on fresh water from Gatun Lake, which is facing critically low water levels. The canal relies on rainfall to maintain its water supply, and right now, that supply is limited.

In 2023, a combination of insufficient rainfall and El Niño weather patterns led to the second driest year in the 110-year history of the canal.

The canal region is experiencing a 41% decrease in rainfall compared to normal levels, and this water scarcity poses a serious risk to the $270 billion (£213 billion) worth of cargo that passes through the Atlantic-Pacific shortcut each year.

They have implemented water-saving measures, which means that fewer ships can transit through the canal each day.

They reduced the number of ships from an average of 36 to 24, as each vessel is now transporting less cargo due to weight limitations.

This is because water from the lake is necessary for the operation of the canal locks.

However, the shortage of water is creating challenges for international trade. The Panama Canal Authority also provides drinking water to half of the country's population, including those living in the capital, Panama City.

Ilya Espino de Marotta, the first-ever chief sustainability officer of the Panama Canal Authority, stated that they are actively seeking ways to ensure that the canal does not experience a water shortage.

The Panama Canal operates by transporting vessels through a sequence of locks that are situated above sea level, which are supplied by Lake Gatún and the smaller Lake Alajuela.

Every ship that goes through the locks uses approximately 50 million gallons of water with the new locks that were constructed in 2016.

At the same time, the larger Neo-Panamax locks utilize 60% less water.