“China is trying to control the Panama Canal,” warns Trump; promises not to let | Today’s news
US President Donald Trump said on Wednesday (local time) that the United States should never relinquish control of the Panama Canal, claiming that Panama raised transit fees after taking control. He warned that China was trying to expand its influence on the strategic waterway and vowed that Washington would not allow it, ANI reported.
Trump made the announcement at the opening of the Theodore Roosevelt Presidential Library in Medora. He condemned the historic decision to transfer control of the canal and vowed that the US would not allow Beijing to take control.
Donald Trump criticizes the decision to relinquish control of the Panama Canal
Trump said: “The Panama Canal, so we gave it away. The first thing they did, you know what they did? They raised the price of ships four times and didn’t lose a ship. And then they raised it twice and didn’t lose a ship. All they did was make a huge amount of money for years and years. How stupid was that?”
The US president added: “And now China is trying to take over the Panama Canal and we’re not going to allow that, okay? And that wasn’t part of the script because I don’t really have a script because this thing doesn’t work.”
His remarks related to Washington’s decision to transfer control of the Panama Canal under the Torrijos-Carter Treaties of 1977, a transfer that culminated in Panama taking full control of the waterway in 1999.
Trump’s remarks underscore one of his repeated desires to reclaim Washington’s ownership of the Panama Canal, the Council on Foreign Relations (CFR) said. Earlier this year, however, China sought to deepen its ties with Panama, pushing back against any third-party interference.
Panamanian relations should not be subject to the interference of a third party: China
Earlier this year, in March, Chinese Foreign Minister Wang Yi said Beijing was ready to strengthen practical cooperation with Panama and called on the Central American country to protect the rights of Chinese companies, Reuters reported. During a meeting with Panamanian Foreign Minister Javier Martínez-Acha, Wang said ties between Beijing and Panama City should not be subject to third-party interference, a reference to US pressure over China-linked infrastructure near the Panama Canal, which handles 5% of global maritime trade.
Significance of the Panama Canal
According to a CFR report released last year, the Panama Canal facilitates hundreds of billions of dollars worth of trade each year. It is a central hub for international trade that is critical to US supply chains.
The 51-mile-long Panama Canal connects the Atlantic and Pacific oceans and is a key global seaway. By providing a shorter route between the Atlantic and Pacific oceans, the canal eliminates the need for ships to sail around the southernmost tip of South America. The time and cost savings make it one of the busiest trade corridors in the world, with more than 13,000 vessels carrying about 5-6% of the world’s trade passing through each year.
While the Panama Canal is vital to both the US and Panamanian economies, Washington remains its largest user, with roughly 40% of all US container traffic passing through the canal annually. Other major users of the waterway include Chile, China, Japan and South Korea.
