In a recent diplomatic spat, former US President Donald Trump stirred things up by suggesting the Panama Canal should be returned to US control. Trump accused Panama of unfairly charging high fees for using the canal. Panama's President José Raúl Mulino quickly responded, emphasizing that the canal and its surrounding area belong to Panama. He stressed that Panama's sovereignty and independence are not up for negotiation.

The canal, which links the Atlantic and Pacific oceans, is crucial for the US economy. About 75% of its cargo goes to or from the US. The waterway was handed over to Panama by the US in 1999, following a treaty signed during Jimmy Carter's presidency. Trump criticized this decision, claiming the US built the canal and uses it the most.

Mulino explained that the canal's rates are based on market conditions, international competition, and the costs of operating, maintaining, and modernizing the waterway. The canal brings billions of dollars to Panama's economy. However, recent droughts have reduced the number of ships using the route, causing supply chain issues.

Panama also has economic ties with China. In 2017, Panama switched diplomatic ties from Taiwan to China. Chinese investments in infrastructure and trade zones have made China an important economic partner. Trump expressed concerns about China's influence, but Mulino clarified that the canal is not controlled by any external power.

Mulino's presidency focuses on boosting foreign investment and economic growth. He has offered cooperation with the US on migration and promised to address the Darién Gap, a jungle area where many migrants cross on their way to the US.

Trump's Canal Controversy: A Clash Over Fees and Sovereignty

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