President-elect Donald Trump has repeatedly suggested that the United States take back the Panama Canal, a waterway that runs through Central America, unless tariffs for using the canal are reduced.
The Panamanian leader responded in a recent statement, saying the waterway was not for sale. Since then, Trump has repeatedly posted about the channel.
It’s the latest in a series of similar statements from Trump, who recently suggested that the United States take control of Greenlandan idea that he also has floated during his first presidency. He also joked about Canada to be an American state.
Here’s what you need to know about the history of the Panama Canal and the United States’ involvement in the shipping lane.
History of the Panama Canal
The Panama Canal was built by the United States between 1904 and 1913 and opened in 1917. The canal cost approximately $375 million to construct, making it the most expensive construction project in US history -United at that time, according to the Panama Canal Authority. The canal connects the Pacific and Atlantic oceans, providing ships with a shortcut around the tip of South America. The canal revolutionized maritime traffic in the region.
The United States acquired the rights to construct and operate the canal in the early 20th century, but at the time Panama was in the process of separating from Colombia, whose Senate refused to ratify a treaty authorizing the canal. construction of the canal, according to Office of the State Department Historian.
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To guarantee the construction of the canal, the former President Theodore Roosevelt They supported Panama’s independence, and in 1903 the United States and Panama signed a treaty establishing permanent U.S. rights to a “Panama Canal Zone” that stretched across the country. However, the person who negotiated on behalf of Panama did not have formal consent from the national government and had not lived in the country for 17 years, leading many Panamanians to question the validity of the treaty, according to the Historian’s Office.
Throughout the 20th century, the United States and Panama faced tensions over the canal, including a riot in the 1960s that led to a brief hiatus in diplomatic relations between the two countries. In 1967, the United States and Panama began negotiating a new treaty, eventually reaching an agreement, but a change in elected leaders and a coup in Panama led to the establishment of a new government in this Central American country, according to the Historian’s Office. . For this reason, the negotiations “suffered a major setback.”
Negotiations continued throughout the 1970s. When Jimmy Carter was elected president, he made ending the negotiation process a priority, according to the Historian’s Office. In 1977, two treaties were submitted to the U.S. Senate: the Neutrality Treaty, which stipulated that the United States could use its military to defend the canal, allowing “perpetual use” of the waterway, and the Canal Treaty of Panama, which would put an end to the existence of the canal. of the Panama Canal Zone and allow the canal to be ceded to Panama in December 1999. Under the second treaty, Panama would also become primarily responsible for defending the canal.
The treaties, collectively known as the Torrijos-Carter Treatieswere signed on September 7, 1977. In the spring of 1978, the U.S. Senate voted to ratify the treaties, and Carter signed them into law on September 27, 1979. The canal was transferred to Panama on December 31, 1999, under the Clinton administration.
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Who operates the Panama Canal?
The Panama Canal has been owned and operated by the Panama Canal Authority, a government agency, since 1999. The agency was created shortly before the canal was returned to Panama.
Since taking control of the waterway, the Panama Canal Authority has invested billions in expanding the canal. A $5.25 billion canal expansion opened in 2016, doubling the waterway’s capacity and reducing global shipping costs by about $8 billion a year, CBS News previously reported. The expansion also made it possible bigger ships to pass.
Who uses the Panama Canal?
Around 40% of global cargo traffic passes through the Panama Canal, CBS News previously reportedeven if recent droughts have forced operators to reduce sea crossings.
About two-thirds of traffic on the canal is to or from the United States, although ships from around the world use the waterway every day, according to the Panama Canal Authority.
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Between 13,000 and 14,000 ships pass through the canal each year, the agency said.
Clash between Trump and the Panamanian president
Trump initially appeared to suggest the United States should seize the Panama Canal TruthSocial Publication on December 21.
He also raised the issue in front of a crowd of supporters at the Turning Point event. America Day Sunday, where he said Panama was charging “exorbitant prices” and that “the total scam of our country would stop immediately.”
“If the principles, both moral and legal, of this magnanimous gesture of giving are not respected, then we will demand that the Panama Canal be returned to the United States of America, in its entirety, quickly and without question ” Trump said.
On Wednesday, Trump said he would name Kevin Marino Cabrera, a member of the Miami-Dade International Trade Consortium, will serve as U.S. Ambassador to Panama. In this announcementhe accused Panama of “ripping us off on the Panama Canal, far beyond their wildest dreams.”
Trump continued to post online about the United States regaining ownership of the canal and referenced the canal in a Christmas Day post shared on TruthSocial. He warned of potential Chinese influence on the waterway, although there is no Chinese presence on the canal, according to Reuters. A Hong Kong-based company operates two ports along the canal, Reuters reported.
The President of Panama, José Raúl Mulino, said in a statement shared on social media that “every square meter” of the canal “belongs to Panama and will continue to belong to Panama.”
“We’ll see about that!” » Asset written online in response.