Panama Canal

What's Happening: Trump Threatens to Take Over Panama Canal Over "Excessive" Fees

Introduction

In a shocking move, President-elect Donald Trump has threatened to take control of the Panama Canal unless the Panamanian authorities stop charging "excessive" rates for American vessels to use the vital waterway. This development has sent shockwaves through the global shipping community, with many wondering what this means for the future of international trade. In this article, we'll take a closer look at the official coverage of this story and explore the background context to understand the implications of this move.

Official Coverage

According to verified news reports, President-elect Trump made the threat in a statement to OilPrice.com, saying that the Panamanian authorities were charging "excessive" rates for American vessels to use the Panama Canal. The statement read: "We are going to take control of the Panama Canal unless they stop charging us excessive rates." (OilPrice.com)

This threat was also echoed in a Truth Social post, where Trump accused Panama of charging American vessels "exorbitant prices" to use the waterway. (The Independent)

The Panama Canal is a critical waterway that connects the Atlantic and Pacific Oceans, and is a vital route for international trade. The canal is operated by the Panama Canal Authority, which is an autonomous agency of the Government of Panama.

Background Context

The Panama Canal has a rich history dating back to the 1890s, when the United States first attempted to build a canal across the Isthmus of Panama. The construction of the canal was a complex and challenging project that required the use of innovative technologies, including the Ajax, a floating crane built to move and install the canal locks and other large parts of the canal.

The Panama Canal has also been the subject of controversy in the past, particularly during the construction of the Canal Zone, a 10-mile-wide strip of land that was ceded to the United States by Panama in 1903. The Canal Zone was home to the Canal Zone Police, a United States federal law enforcement agency that was responsible for security and general policing duties in the Panama Canal Zone.

Other notable canals around the world, such as the Corinth Canal in Greece and the Canal des Deux Mers, which connects the Atlantic and Mediterranean Oceans, have also been used to describe similar waterways.

Impact Analysis

The threat to take over the Panama Canal has significant implications for the global shipping community, particularly for American vessels that rely on the waterway for international trade. The Panama Canal is a critical route for goods shipped between Asia and the East Coast of the United States, and any disruption to the canal's operations could have far-reaching consequences for the global economy.

According to official news reports, the Panama Canal Authority has denied any wrongdoing and has accused Trump of making "unfounded" claims. The authority has stated that the rates charged for the use of the canal are "fair and reasonable" and are in line with international standards.

Future Implications

The future implications of Trump's threat to take over the Panama Canal are unclear, but it is likely that the issue will be the subject of intense diplomatic negotiations between the United States and Panama in the coming weeks and months. Any disruption to the canal's operations could have significant consequences for the global economy, and it remains to be seen how this issue will be resolved.

Sources

• OilPrice.com: "Trump Threatens Panama Canal Takeover Over 'Excessive' Fees"
• The Independent: "Trump threatens to retake Panama Canal in Truth Social post"
• Panama Canal Authority: Official website

Note: The additional context provided in the background section is based on unverified sources and is intended to provide background information only.