‘China trying to take over Panama Canal,’ warns Trump; vows he will not let it happen

US President Donald Trump on Wednesday (local time) said the United States should never have relinquished control of the Panama Canal, claiming that Panama raised transit fees after assuming control. He warned that China was trying to expand its influence over the strategic waterway and vowed that Washington would not allow it, ANI reported.

Trump made the statement at the opening of the Theodore Roosevelt Presidential Library in Medora. He slammed the historical decision to transfer control of the canal and pledged that the US would not allow Beijing to take control.

Donald Trump slams decision to cede Panama Canal control

Trump said, "The Panama Canal, so we gave it away. The first thing they did, you know what they did? They raised the prices for the ships by four times, and they didn't lose one ship. And then they raised it again twice, and they didn't lose one ship. All they did was make tremendous amounts of money for years and years. How stupid was that?"

The US president added, "And now China's trying to take over the Panama Canal, and we're not going to let that happen, okay? And that was not part of the script because I don't really have a script because this thing doesn't work."

His remarks referred to Washington's decision to transfer control of the Panama Canal under the 1977 Torrijos-Carter Treaties, a transfer that culminated with Panama assuming full control of the waterway in 1999.

Trump's remarks underscore one of his repeatedly expressed desires to regain Washington's ownership of the Panama Canal, the Council on Foreign Relations (CFR) reported. However, earlier this year, China tried to deepen its ties with Panama and pushed back against any third-party interference.

Panama ties shouldn't be subject to third-party interference: China

Earlier this year, in March, China's Foreign Minister Wang Yi said that Beijing was ready to enhance its practical cooperation with Panama and urged the Central American country to protect the rights of Chinese firms, Reuters reported. During a meeting with Panamanian Foreign Minister Javier Martínez-Acha, Wang said the ties between Beijing and Panama City should not be subject to third-party meddling, a reference to pressure from the US over Chinese-linked infrastructure near the Panama Canal, ​which handles 5% of global maritime trade.

Significance of Panama Canal

According to a CFR report published last year, the Panama Canal facilitates hundreds of billions of dollars in trade every year. It is a central hub for international commerce, which is crucial to US supply chains.

The Panama Canal, which is 51 miles long, connects the Atlantic and Pacific Oceans and is a crucial global maritime passageway. By providing a shorter route between the Atlantic and Pacific oceans, the canal eliminates the need for ships to sail around the southernmost tip of South America. The time and cost savings make it one of the world's busiest trade corridors, with over 13,000 vessels carrying about 5-6% of global trade passing through each year.

While the Panama Canal is crucial to both the US and Panamanian economies, Washington remains its largest user, with roughly 40% of all US container traffic transiting the canal annually. Other major users of the waterway include Chile, China, Japan and South Korea.