Former President Donald Trump has reignited tensions with Panama over the managing of the Panama Canal, announcing intentions to reclaim the vital maritime artery unless transit fees are reduced. This topic, stemming from Trump's remarks during a recent event, reflects an enduring complexity within U.S.-Panama relations and centuries of historical context surrounding the canal’s control.

The Panama Canal, completed by the United States in 1913, was transferred to Panamanian control in 1999 under treaties negotiated by President Jimmy Carter in 1977. Trump criticized this treaty, describing it as a foolish concession. He has claimed the United States is being “ripped off” due to the fees charged by Panama, suggesting that these prices do not reflect the generosity the U.S. has extended towards the canal's management (The Hill).

Panama’s President José Raúl Mulino fiercely defended his country’s sovereignty, asserting that “every square meter” of the canal belongs to Panama. In his remarks, Mulino emphasized the canal's significance, stating, “The sovereignty and independence of our country are not negotiable.” He noted that fees for transiting are not arbitrary but result from careful consideration of international competition and maintenance needs (VOA News).

Trump's past references to acquiring territories, such as Greenland, and questioning the presence of foreign influence in the canal’s operations has raised eyebrows. His remarks insinuated China's growing involvement in Panama, a claim that the Panamanian government has rejected, insisting that management is strictly national and free from external meddling. The canal’s operation by the Panama Canal Authority since 1999 has included significant investments, such as the $5.25 billion expansion completed in 2016, allowing greater vessel capacity and lowering global shipping costs by billions annually (CBS News).

Trump’s initiative to demand control over the canal, citing historical American contributions to its construction, has been contested. Reports from historical accounts indicate that while many American workers did perish during its construction, the actual death toll is far less than could be presumed from Trump's figures (around 300 rather than 38,000) (The Hill). These statements not only reflect his controversial leadership style but also raise concerns about possible military implications should demands escalate.

Internationally, Trump's assertions have met with skepticism, as allies express varying degrees of disbelief regarding the feasibility or legitimacy of U.S. claims to the canal. Mulino reiterated that the canal serves all nations fairly and stated, “Our Canal has the mission of serving humanity... guaranteeing open and safe operation for all,” countering Trump’s narrative of exploitation (VOA News).

This ongoing dispute encapsulates broader themes of nationalism and historical grievances while highlighting the sensitive nature of international maritime trade dynamics. The canal remains a point of national pride for Panama and a significant factor in global shipping logistics, as approximately 40% of the world’s cargo traffic traverses its waters annually.