AMN/ WEB DESK
President-elect Donald Trump has proposed that his administration might seek to regain control of the Panama Canal, citing ludicrous fees charged to shippers using the crucial waterway. Trump’s remark came during his first major rally since his election victory on November 5.
The canal, which connects the Atlantic and Pacific Oceans, was ceded to Panama by the United States on December 31, 1999, under a treaty signed by President Jimmy Carter in 1977.
Panama’s President José Raúl Mulino, elected in May on a pro-business platform, dismissed Trump’s suggestion as an affront to Panama’s sovereignty. The canal generates about one-fifth of Panama’s annual revenue and is vital to the nation’s economy.
The Panama Canal, built by the United States in the early 1900s, has faced operational challenges recently due to 2023’s Central American droughts, which reduced daily ship crossings. Although transit has since normalised with improved weather, higher fees are expected to persist into next year.