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US-Panama Tensions Rise Over Control of Panama Canal

He alleges that China now indirectly controls the canal, a situation he deems unacceptable, hinting at significant measures that may be taken soon.

By:  Tupaki Desk   |   3 Feb 2025 5:45 AM GMT
US-Panama Tensions Rise Over Control of Panama Canal
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The tension between the US and Panama over the control of the Panama Canal has escalated, with US President Donald Trump signaling a potential "powerful action" to reclaim the historic waterway. Trump, notorious for his confrontational stance towards other nations, has previously imposed tariffs on several countries and is now focusing his attention on the Panama Canal. He alleges that China now indirectly controls the canal, a situation he deems unacceptable, hinting at significant measures that may be taken soon.

At a recent press conference, Trump voiced his concerns, stating, "China is indirectly controlling the Panama Canal. We didn't give it to China, but Panama is violating the agreement. That's why we want to take back the canal. Or, a powerful action is coming soon." This statement underscores the administration's growing impatience with the current arrangement, although Trump suggested that the use of force might not be necessary.

The backdrop of this dispute is the US's historical involvement in the Panama Canal. Constructed by the US in 1914, the canal was a marvel of engineering and a critical maritime route. In a landmark agreement, control of the canal was transferred to Panama in December 1999. Nevertheless, Trump has raised issues with the high fees Panama imposes on American ships, both commercial and naval, threatening to retake the canal if these concerns are not addressed.

Amid these tensions, US Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino, emphasizing the need to curb China's influence over the canal. "We must stop China's interference and control over the Panama Canal. Otherwise, Washington will take appropriate action," Rubio warned. In response, President Mulino affirmed Panama's readiness to negotiate but expressed no fear of American aggression, highlighting the resolve of the Panamanian leadership in the face of escalating pressures.

In a significant development, President Mulino announced Panama's withdrawal from China's Belt and Road Project. This decision, made in the context of Trump's threats, signals a potential shift in Panama's international alignments and has sparked widespread discussion. The move is seen as an attempt to address some of the concerns raised by the US administration, though it remains to be seen how this will affect the ongoing dispute over the canal.

The confrontation over the Panama Canal has led to increased strains between the US and Panama, marking a new chapter in the complex relationship between the two countries. With both nations standing firm on their positions, the future of this vital maritime passage hangs in the balance.

It's worth noting that the information in this article is based on the current situation as of February 3, 2025, and developments are ongoing. Readers are encouraged to stay updated on this matter as it continues to evolve.