Panama Canal Chief Rejects U.S. Takeover Claims \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Panama Canal Administrator Ricaurte Vásquez rejected claims by President-elect Donald Trump that the U.S. should retake control of the canal. Vásquez emphasized that the canal remains neutral and open to global commerce under Panamanian control, following a treaty. Trump’s allegations about Chinese influence were also denied.
Panama Canal Stays Independent Despite U.S. Takeover Claims: Quick Looks
- U.S. Control Rejected: Vásquez dismissed Trump’s suggestion to retake the canal, citing established treaties.
- Neutrality Treaty: The canal operates under a treaty ensuring equal treatment for all nations’ ships.
- Chinese Influence Denied: Vásquez clarified that Chinese companies operate ports through legitimate bids.
- Fee Structure Explained: Fees are uniform and were recently adjusted after droughts reduced ship capacity.
- Strategic Importance: About 70% of canal traffic serves U.S. ports, highlighting its global significance.
- Historic Context: The U.S. built the canal in the early 1900s but transferred control to Panama in 1999.
Deep Look
The Panama Canal, one of the most critical waterways for global commerce, remains firmly under Panamanian control despite recent claims by President-elect Donald Trump that the United States should regain authority over it. Trump’s assertions, including unsubstantiated allegations of Chinese dominance and “ridiculous” transit fees, have sparked controversy. However, Panama Canal Administrator Ricaurte Vásquez reaffirmed the canal’s neutrality and commitment to serving all nations equally under international agreements.
Panama Rejects U.S. Takeover Claims
In a recent interview, Vásquez firmly rejected Trump’s statements, including the suggestion that the U.S. should consider using military force to retake the canal.
“There is no foundation for that sort of hope,” Vásquez said, calling the canal’s independence a settled matter. Panamanian President José Raúl Mulino echoed this sentiment, stating unequivocally that the canal will remain under Panamanian control.
The U.S. relinquished control of the Panama Canal on December 31, 1999, as part of a treaty signed by President Jimmy Carter in 1977. The handover marked the end of nearly a century of U.S. administration since the canal’s construction in the early 1900s.
Neutrality and Global Access
Vásquez emphasized the canal’s neutrality, a key principle outlined in the treaty governing its operation. The agreement prohibits preferential treatment for ships of any nation, including those flying U.S. flags. The sole exception is expedited passage for American warships.
“The most sensible and efficient way to do this is to maintain the established rules,” Vásquez said. “Requests for exceptions are routinely rejected to ensure transparency and fairness.”
Some 70% of the canal’s traffic either originates from or is destined for U.S. ports, underscoring its strategic importance. However, Vásquez noted that the canal serves global commerce, not just American interests.
Addressing Allegations of Chinese Influence
Trump has repeatedly claimed that Chinese companies are exerting control over the Panama Canal, but Vásquez dismissed these assertions. He explained that Chinese companies operating ports at either end of the canal are part of a Hong Kong consortium that won a bidding process in 1997. Additionally, U.S. and Taiwanese companies operate other ports along the waterway, illustrating its multinational nature.
Transit Fees and Adjustments
Trump has criticized the fees for using the canal, calling them “ridiculous” and alleging unfair pricing. Vásquez countered these claims, explaining that the canal’s fee structure is uniform and applies equally to all users.
“There’s no discrimination in the fees,” Vásquez said. “The price rules are uniform for absolutely all those who transit the canal and are clearly defined.”
Recent fee adjustments were driven by operational challenges, including severe droughts over the past two years that reduced the number of daily crossing slots. To compensate for reduced capacity, administrators increased reservation fees for shippers. Vásquez stated that future fee changes would undergo public consultation to provide clarity and stability for clients.
Historical Context and Strategic Importance
The Panama Canal spans 51 miles, connecting the Atlantic and Pacific Oceans and allowing ships to avoid the lengthy and costly journey around Cape Horn at the southern tip of South America. Built by the United States in the early 20th century, the canal has been a cornerstone of global commerce and military strategy.
The waterway depends on reservoirs to operate its locks, making it vulnerable to environmental challenges such as drought. Despite these difficulties, Vásquez highlighted the canal’s commitment to remaining open, even during the COVID-19 pandemic, when strict measures were implemented to protect workers while maintaining operations.
A Vital Responsibility
Vásquez described managing the Panama Canal as an “enormous responsibility,” particularly given its significance to global trade. During his tenure, he has prioritized transparency, efficiency, and neutrality to ensure the canal remains a reliable link for international commerce.
“We kept the canal open during COVID because the international commitment is to keep it open,” Vásquez said, emphasizing Panama’s dedication to maintaining the waterway’s vital role.
Looking Forward
As the canal approaches its 25th year under Panamanian control, its administrators remain focused on addressing challenges such as climate impacts and growing global trade demands. With the waterway serving as a lifeline for 70% of U.S.-bound sea traffic and countless other international shipments, Panama’s stewardship of the canal is more critical than ever.
Despite political rhetoric, Vásquez’s message is clear: the Panama Canal will remain independent, neutral, and open to all nations, operating under the rules and principles established to ensure its global importance endures.
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