Trump asks Panama to stop "rip off"

U.S. President-Elect Donald Trump has asked Panama to stop exorbitant prices and rates of passage for the canal.

"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete “rip-off” of our country will immediately stop.." Trump posted on TruthSocial.

Panamanian President José Raúl Mulino shot back saying: “As President, I want to express clearly that every square metre of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so."

“The sovereignty and independence of our country are not negotiable," Mulino said in a video posted on X.

"We will see," says Trump and posted a photo: "Welcome to the United States Canal."

Panama Canal and America
Trump said the United States is the number one user of the canal "with over 70 percent of all transits heading to or from, U.S. ports. Considered one of the Wonders of the Modern World, the Panama Canal opened for business 110 years ago, and was built at HUGE cost to the United States in lives and treasure - 38,000 American men died from infected mosquitos in the jungles during construction."

Mulino, in his statement, said: “The canal is not under direct or indirect control, neither by China, nor by the European community, nor by the United States, nor by any other power. As a Panamanian, I strongly reject any manifestation that distorts this reality. Panama respects other nations and demands respect."

The U.S. and Panama had signed a treaty in 1977 to hand over the canal to Panama and guarantee its neutrality.

Trump writes: "Teddy Roosevelt was President of the United States at the time of its building, and understood the strength of naval power and trade. When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else. It was likewise not given for Panama to charge the United States, its Navy and corporations doing business within our country exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way."

Mulino, in his statement said: "we will soon celebrate the 25th anniversary of the transfer. Since then, there have been no objections or complaints; on the contrary, it has been a source of strong international support and national pride."

Importance of Panama Canal
The Panama Canal has a length of approximately 80 kilometers between the Atlantic and Pacific oceans, says an official update.

"Built in one of the narrowest areas of the continent, the interoceanic highway links North America with South America. Ships from all over the world transit through the Panama Canal daily. Between 13,000 and 14,000 ships use the Canal each year. In fact, we proudly serve more than 180 maritime routes, connecting 1,920 ports across 170 countries. With the work of approximately 9,000 workers, the Canal operates 24 hours a day, 365 days a year, offering transit service to ships from all nations."

The Panama Canal is now managed by the Panama Canal Authority with a revenue of 4.99 billion PAB ($4.99 billion) in FY2024. "The Panama Canal faced the historic challenge of a prolonged drought that impacted the Gatun and Alhajuela lakes at levels rarely seen in 110 years."

Operating margin reached 62.2 percent with EBIT margins increasing from 45 percent in 2019 to 63 percent in 2024.

Ricaurte Vásquez, Administrator of the Panama Canal, highlighted the allocation of $8.5 billion for green projects, aligned with the Canal’s goal of net-zero carbon emissions by 2050, ensuring its future sustainability.

First published on logupdateafrica