WASHINGTON: US President-elect Donald Trump has accused Panama of charging excessive fees for American ships passing through the Panama Canal and said he would demand the Washington ally hand it over.
He also hinted at China’s increasing influence around the canal, a worrying trend for American interests as US businesses depend on the waterway to move goods between the Atlantic and Pacific oceans.
“Our Navy and commerce have been treated in a very unfair and injudicious way,” he said in a post on his Truth Social platform.
“This complete ‘rip-off’ of our country will immediately stop,” he added.
The post is a rare example of a US leader saying he could push a sovereign state to hand over territory. It also underscores an expected shift in US diplomacy under Trump.
The Panama Canal, completed by the United States in 1914, was returned to Panama following a 1977 agreement signed by President Jimmy Carter. Panama took full control of the canal in 1999.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US,” Trump said.
“It was solely for Panama to manage, not China, or anyone else,” Trump said. “We would and will NEVER let it fall into the wrong hands!”
He added that if Panama could not ensure “the secure, efficient and reliable operation” of the channel, “then we will demand that the Panama Canal be returned to us, in full, and without question.”
Panama Authorities have not immediately reacted to Trump’s post.
According to estimates, 5% of international maritime traffic passes through the Panama Canal, which allows ships travelling between Asia and the U.S. East Coast to avoid the long route around South America.
The United States, China, Japan, and South Korea are the main users of the waterway.
The Panama Canal Authority in October said that the waterway had earned record revenues of nearly $5 billion in the last fiscal year.
