Donald Trump has threatened to retake control of the Panama Canal unless “rip-off” transit fees are reduced for US ships.
In social media posts, the president-elect said the 51-mile waterway was vital to America’s economic and security interests but was being run in a “very unfair and injudicious way”.
The canal, which was built by the US more than a century ago, connects the Atlantic and Pacific oceans and is regarded as one of the world’s most important routes for maritime trade.
Mr Trump said a 1977 agreement to transfer ownership from the US to Panama was signed as a gesture of cooperation, but warned: “The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US.
“This complete rip-off of our country will immediately stop.
“The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal, and that was always understood.
“We would and will NEVER let it fall into the wrong hands! It was not given for the benefit of others, but merely as a token of cooperation with us and Panama.
“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question.”
He added that the canal was “solely for Panama to manage, not China, or anyone else”, in an apparent suggestion that Beijing is seeking to influence the strategic waterway.
Around 14,000 ships make the crossing per year, with the US accounting for roughly three quarters of traffic.
However, in recent years prolonged droughts have forced authorities to reduce throughput to conserve water, triggering competition for places and higher prices.
The canal was originally started by the French in the 1880s but was abandoned following engineering problems and tropical diseases that hit the workforce.
US officials took over the scheme in 1904 and completed it 10 years later, at a cost of around $375m – almost $12bn in today’s money – and thousands of lives lost to sickness.
The canal quickly revolutionised global shipping, allowing vessels to avoid lengthy and hazardous trips around South America. This was significant militarily as well, as it allowed the US to quickly move naval ships from the Atlantic to the Pacific.
But in 1977 Jimmy Carter, the former president, signed an agreement to gradually hand the canal over to Panama by 1999 – a move that Mr Trump described as “foolish”.
It was not clear on Sunday whether Mr Trump was responding to a specific threat of ownership change.
The Panama Canal is regarded as one of the world’s most important routes for maritime trade – Panama Canal Authority/AFP
China has not publicly expressed any interest in acquiring the canal, which is operated on a day-to-day basis by the Panama Canal Authority.
However, Beijing successfully convinced Panama to join its “Belt and Road” trade initiative in 2018 and Chinese companies have become heavily involved in infrastructure projects along the waterway.
Chinese companies also run major ports at each end of the canal, with Hong Kong-based Hutchinson PPC successfully renewing a 25-year lease for the administration of the ports of Balboa and Cristobal in 2021.
China-based Landbridge Group also acquired control of Margarita Island, Panama’s largest port on the Atlantic side and a major free-trade zone, for $900m in 2016.
The deal led to the construction of the Panama-Colon Container Port (PCCP), a deep-water port for mega-sized ships.
It was built by state-owned China Communications Construction Company, a company that was sanctioned by the US Department of Commerce in 2020 for helping Beijing to “militarise” disputed islands in the South China Sea.
China’s increased presence in and around Panama has “stirred alarm for the United States over ambitions seen as endangering the neutrality of the canal,” according to the Centre for Strategic and International Studies.
A spokesman for Panama’s government told Bloomberg that officials were aware of Trump’s statement and would issue a formal response in the coming days.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=67684a5abc224ad0ad33842715c9c762&url=https%3A%2F%2Fwww.yahoo.com%2Fnews%2Fdonald-trump-threatens-seize-control-165809903.html&c=13920382298018795427&mkt=en-us
Author :
Publish date : 2024-12-22 03:58:00
Copyright for syndicated content belongs to the linked Source.
