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Evening Standard
Evening Standard
Nuray Bulbul

Who owns the Panama Canal and what does Donald Trump want with it?

The Panama Canal was built by the US - (Arnulfo Franco / AFP via Getty Images)

Donald Trump, the president-elect of the United States, stated that his administration will attempt to retake control of the Panama Canal.

The issue was brought up by Mr Trump during AmericaFest on Sunday (December 22), an annual gathering hosted by the conservative organisation Turning Point.

The US “foolishly gave it away”, he claimed at the Arizona event, adding, “W’'re being ripped off at the Panama Canal like we're being ripped off everywhere else.”

Mr Trump captioned a photo of the US flag flying over a small body of water on his Truth Social platform and Instagram after AmericaFest, saying, “Welcome to the United States Canal!”.

Who owns the Panama Canal?

As the name suggests, Panama owns the canal.

Opening in 1914, the US-built canal was under US administration until a 1977 agreement called for its ultimate transfer to Panama. Both nations worked together to operate the canal until 1999, when the Panamanian government took exclusive authority.

What does Donald Trump want with the Panama Canal?

Ships soon outnumbered the canal's capacity once the Panamanians regained exclusive control of it in 2000.

Beginning in 2007, a significant enlargement project was finished almost 10 years later. However, the canal's ability to operate effectively has been hampered by the severe droughts that have been plaguing the surrounding area.

Canal officials have increased the cost of using the canal and placed limits on traffic.

These expenses seem to be a contributing factor in Mr Trump's canal grievance. The president-elect said on Sunday that it is, “highly unfair, especially knowing the extraordinary generosity that has been bestowed to Panama, I say, very foolishly, by the United States”.

Additionally, Mr Trump's other assertion is that China is attempting to increase its influence over Panama and the Canal Zone.

A joint declaration agreed by Panama and China in 2017 emphasised that the two countries will not have any formal relations with Taiwan, the self-governing democracy claimed as its own territory by China's ruling communist party. Since then, China has become more influential in the region surrounding the canal.

In light of what he said was the unprecedented generosity the US has shown Panama, the president-elect called them “ridiculous” and “highly unfair” on Sunday.

The Panamanian administration is opposed to Mr Trump's proposal.

In a statement released on Sunday, president José Raúl Mulino stated, “As president, I want to express precisely that every square metre of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be.”

He went on to say, “The sovereignty and independence of our country are not negotiable.”

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