Panama Canal File Photo: AFP
After being elected as US President, Donald Trump has said that the Panama Canal will be taken back under US control. This canal is located in the Latin American country of Panama and they have controlled this important waterway for decades. Naturally, the Panamanian government has rejected Trump’s idea.
Trump has two objections to the Panama Canal. According to him, the canal authority is charging the US “extremely high” fees for using it. Secondly, he has indicated that China’s influence over the canal is gradually increasing. Trump says that the US is generously helping Panama, but the rate at which the country charges the US is “ridiculous”.
CNN reported that the US-built canal was opened in 1914. Then in 1977, the country signed an agreement with Panama to hand over the canal to them. However, until 1999, the two countries jointly controlled the Panama Canal.
Panamanian President Jose Raul Mulino said in a statement, “As president, I want to confirm that every square meter of the Panama Canal and its surroundings are and will remain the property of Panama. The sovereignty and independence of our country will not be negotiable.”
How the Panama Canal began
Before the Panama Canal was built, ships traveling between the east and west coasts of the Americas had to go around Cape Horn. This is the southernmost point of South America. As a result, ships had to travel thousands of miles around, sometimes taking months.
Some of the countries that had established colonies in America wanted to create a waterway that would reduce shipping times between the Atlantic and Pacific Oceans. However, their desire was never fulfilled.
Then, in the early 20th century, President Theodore Roosevelt made building such a waterway a priority. What is now Panama was then controlled by the Republic of Colombia. But a US-backed rebellion split Panama and Colombia, and in 1903 the independent Republic of Panama emerged.
The newly independent country of Panama and the United States signed a treaty that same year, under which a 10-mile stretch of land was transferred to US control. In return, Panama received money. And the United States received the right to dig a canal.
The canal was completed in 1914. As an engineering and technological superpower, the United States was widely praised. But the canal came at a great human cost. It is estimated that 5,600 people died during its construction.
The real importance of the canal was understood during World War II. At that time, Allied ships were able to travel between the two oceans in less time. But relations between Panama and the United States deteriorated over issues such as control of the canal, the treatment of Panamanian workers, and whether or not the two countries’ flags should be flown simultaneously in the canal area.
Tensions reached a peak on January 9, 1964. On that day, several people died in anti-American riots in the canal area. Diplomatic relations between the two countries were also briefly severed. After years of negotiations, an agreement was signed between the two countries during the administration of President Jimmy Carter.
The agreement declared the Panama Canal neutral and stated that it would be open to all ships. According to the agreement, control of the canal would be shared between Panama and the United States until 1999, after which it would pass to Panama. However, not everyone supported Jimmy Carter’s agreement. In 1976, then-presidential candidate Ronald Reagan said that the American people were the “rightful owners of the canal area.”
Tensions over the Panama Canal flared up again between the two countries in the late 1980s. At that time, Manuel Noriega was the president of Panama. At that time, the United States launched a military operation in Panama as part of the “war on drugs” and ousted Manuel Noriega.
New Trouble
After taking full control of the canal in 2000, ships began using it beyond its capacity. In 2007, work began on a major expansion project that was completed a decade later. But a severe drought in the canal area caused the water level to drop, making it difficult to operate. To deal with the situation, authorities reduced the number of ships and increased the toll.
Donald Trump is probably unhappy about the additional toll.
However, Trump’s claim that China wants more control over Panama and the canal as a state has some basis. In 2017, Panama signed a joint declaration stating that it would not have any formal relations with Taiwan. The Chinese Communist Party claims the territory as its own. Since then, China’s influence in the canal area has increased.
Panamanian President Jose Raul Mulino, however, said that the toll was “not set at will.” He also rejected the idea that China was openly seeking to increase its control over the canal. He said, “There is no direct or indirect control over this canal by China, the European Community, the United States, or any other power.”
