The US President-elect was accused Donald Trump The State of Panama, yesterday, Saturday, imposed exorbitant fees for the use of the Panama Canal, and said that if Panama does not manage the waterway, which connects the Pacific and Atlantic oceans, in an acceptable manner, the US-allied country will demand that it hand it over. What is the importance of this channel for the United States and global trade?
The Panama Canal is considered a vital national asset for the United States, due to its vital role in America’s economy and national security.
Read also: Trump threatens Panama to hand over the canal to America if it continues to impose exorbitant fees
Trump’s new position was issued in an evening post on his social media site, Truth Social, where he also warned that he would not allow the canal to fall into the “wrong hands” and appeared to warn of potential Chinese influence on the waterway, writing that the canal should not be managed by China. .
Panama President José Raul Molino responded to Donald Trump’s threats over the Panama Canal with a video posted on social media in which he said “every square mile of the canal and adjacent areas will remain under Panama’s control.” Adding that “the sovereignty and independence of our country are not negotiable.”
It is considered insurance Panama Canal Critical to American commerce, the rapid transportation of the fleet from the Atlantic to the Pacific, and greatly reduced shipping times to American ports.
The United States is the largest user of the canal, with more than 70% of all transit traffic to and from American ports going through it.
A water wonder and an important economic artery
The Panama Canal is an important artery for the American economy and trade, and the United States is the largest user of the canal, as total US trade containers represent about 73% of Panama Canal traffic, and 40% of the total US container traffic passes through the canal every year. In total, the canal handles approximately $270 billion in goods annually.
Read also: American companies demand that Trump back down on tariffs. Will he budge?
The Panama Canal is considered one of the wonders of the modern world. It was opened for business 110 years ago, after being built at a huge cost to the United States in terms of lives and resources, as 38,000 American men died from mosquitoes during the construction process.
It is the second most important man-made water crossing after the Suez Canal, linking the Atlantic and Pacific oceans and splitting the land connecting the Americas with a length exceeding 80 kilometers, allowing more than 14,000 ships to cross annually.
It is 77 kilometers long, and extends from the Gulf of Limon in the Atlantic Ocean to the Gulf of Panama on the Pacific Ocean.
American made
“Theodore Roosevelt was president of the United States at the time the canal was built, and he fully understood the power of sea power and trade, and when President Jimmy Carter unwisely granted it for a dollar during his presidency, it was to be managed by Panama only, not by China or anyone else,” Trump said. .
The US President-elect stated, “The canal was not granted so that Panama would impose excessive duties on the United States, its fleets, and companies doing business in our country.”
Read also: The Panama Canal begins to recover after two years of the worst drought in its history
He added, “This complete ‘fraud’ on our country will stop immediately… The United States has a great interest in ensuring the safe, efficient, and reliable operation of the Panama Canal, and this has always been understood.”
According to the incoming president, the United States’ navy and commerce were treated unfairly and unwisely, and the tariffs imposed by Panama were unreasonable, especially in light of the “extraordinary generosity granted by the United States to Panama.”
In a direct warning, Trump said, “If the moral and legal principles of this generous gesture of giving are not followed, we will demand that the Panama Canal be returned to us in full and without discussion… To Panama officials, please abide by the agreement!”
Corridor for global trade
The United States built much of the canal and administered the area surrounding the passage for decades. But the United States and Panama signed two agreements in 1977 that paved the way for the canal to return to full Panamanian control. The US government handed over full control of the canal to Panama in 1999 after a period of joint management.
The waterway, which allows up to 14,000 ships to pass annually, represents 2.5% of global seaborne trade and is critical for US imports of automobiles and commercial goods by container ships from Asia and for US exports of goods, including liquefied natural gas.
It is not clear how Trump will seek to regain control of the canal, and he would have no recourse under international law if he decided to press ahead with his bid to control the canal.