In a recent development, Panama's President Jos Ral Mulino has issued a stern response to President-elect Trump's suggestion that the United States should reclaim control of the Panama Canal.
Trump had previously expressed his dissatisfaction with the current state of affairs, stating that the U.S. "foolishly gave it away" and is now "being ripped off" by the Panamanian authorities.
According to Fox News, Mulino released a video in which he firmly stated that "every square meter of the canal belongs to Panama and will continue to belong" to his nation. Although he did not directly address Trump, the Panamanian leader tackled the issue of rising fees for ships traversing the canal. He explained that these tariffs are not arbitrary but are determined by experts who consider operational costs and supply and demand dynamics.
"The tariffs are not set on a whim," Mulino emphasized, adding that the canal has undergone expansions to increase ship traffic "on its own initiative." He further noted that the increased shipping fees contribute to the canal's improvement.
"Panamanians may have different views on many issues," Mulino said. "But when it comes to our canal, and our sovereignty, we will all unite under our Panamanian flag."
In response to Mulino's statement, Trump took to his social media platform, Truth Social, to retort, "We'll see about that!" He also posted an image of a U.S. flag planted in the canal zone with the caption, "Welcome to the United States Canal!"
Trump had previously voiced his concerns about the canal's fees in a post on Truth Social. He expressed his discontent with the tolls imposed on U.S. ships passing through the canal, which can range from three to six figures depending on the size of the vessel and the amount of cargo it carries. The highest charges can reach up to $500,000 for the largest ships.
The Panama Canal, constructed by the United States in the early 1900s, was intended to facilitate the transit of commercial and military vessels between the U.S. coasts. However, control of the canal was handed over to Panama on December 31, 1999, under a treaty signed by President Jimmy Carter in 1977.
The canal's operation relies heavily on reservoirs to manage its locks. The severe Central American drought in 2023 significantly impacted the canal, forcing a substantial reduction in the number of daily slots for crossing ships. This led to an increase in fees for all shippers reserving a slot. Although weather conditions have improved and canal transit has returned to normal, further price increases are anticipated next year.
This report includes contributions from Fox News' Andrea Margolis and the Associated Press.
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