US President Donald Trump said the US would take back the Panama Canal, decrying China’s influence over the important waterway and the high rates being charged to American ships.
In his inauguration speech on Monday, Trump repeated criticisms he made in recent weeks over the canal, which handles about 3 per cent of global seaborne trade each year.
The US oversaw the building of the Panama Canal, which opened in 1914, but handed full control back to the Central American country in 1999. Some officials in Washington are increasingly concerned about Chinese companies’ presence in the area, including a Hong Kong-based company which operates terminals at both ends.
“We didn’t give it to China, we gave it to Panama and we’re taking it back,” Trump said.
Panama’s government has pushed back at Trump’s comments and accusations of Chinese influence. President José Raúl Mulino said in December that the canal “is and will be Panamanian, promoting global trade”.
China does not control the Panama Canal.
Trump has also said that American ships, including military, were being overcharged by the canal. A severe drought in the region of the canal, which uses freshwater to operate its locks, pushed up the cost of crossing in the past 18 months after it led to restrictions and changes in how slots are assigned.
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