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Trump Suggests U.S. May Seek to Reclaim Panama Canal, Panama’s President Responds

Michael Thompson
Senior Reporter
Updated
Dec 24, 2024 8:08 AM
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At a Turning Point USA rally in Arizona, Donald Trump hinted that his administration would try to reclaim control of the Panama Canal, a waterway that the United States gave up in 1999 under a pact signed by President Carter. Trump blasted the costs charged to shipping transiting through the canal, calling them "ridiculous" and claiming that the United States "foolishly gave it away."

The canal is crucial for world trade, but Panama's conservative President José Raúl Mulino, who supports Trump on many issues, promptly dismissed the notion. Mulino claimed in a video statement that "every square meter of the canal belongs to Panama" and that the country's sovereignty over the canal would be preserved. He explained that escalating fees are set by specialists using operational costs, supply, and demand.

Trump's words came at a time when growing canal transit rates have raised concerns, notably after droughts reduced water levels in 2023, resulting in fewer available transport slots. Despite the hurdles, Panama continues to extend and enhance the canal, with revenues used to support infrastructure upgrades.

Trump's comments sparked nationalistic fever on social media, but Mulino remained steadfast in defending Panama's ownership over the crucial waterway.

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