Trump's Controversial Proposal

In a bold and controversial statement, Donald Trump suggested during a recent rally that his upcoming administration may seek to reclaim control of the Panama Canal, which the United States transferred to Panama in 1999. Trump criticized the fees imposed on shippers passing through the strategic waterway, describing them as “ridiculous” and calling the relinquishment of the canal “foolish.”

Panama's Response

This remark sparked immediate backlash from Panama’s conservative President José Raúl Mulino, who vehemently rejected the suggestion as an affront to his country's sovereignty. Mulino, who campaigned on a pro-business platform and took office in April, stressed in a video statement that "every square meter of the canal belongs to Panama and will continue to belong" to the nation, highlighting its significance as a vital revenue source for the Panamanian economy.

Trump's Rally in Arizona

Trump voiced these opinions during his first major rally since his electoral win on November 5, addressing over 20,000 enthusiastic supporters at Turning Point USA's AmericaFest event in Arizona. He took the opportunity to project a message of party unity as he prepares to take office on January 20, 2025, despite the ongoing tensions and budgetary conflicts in Washington. His remarks indicated his determination to restore America to what he called the country's “Golden Age,” promising a booming economy, secure borders, and swift resolutions to conflicts in the Middle East and Ukraine.

Concerns Over Canal Management

At the heart of Trump's grievances was the Panama Canal's management. “We’re being ripped off at the Panama Canal,” he lamented, echoing sentiments that hark back to the historical significance of the canal, which the U.S. initially constructed in the early 1900s. After significant political negotiations, control was ceded to Panama as part of the Torrijos-Carter Treaties.

Current Challenges Facing the Canal

Interestingly, the canal has seen a reduction in shipping traffic recently due to severe droughts in Central America, which limited its operational capacity. With a decrease in available slots for vessels, the canal administration responded by raising fees, stirring discontent among shippers. Although transit levels have improved towards the end of 2023, fee increases are still anticipated in the coming year due to ongoing operational costs and necessary improvements.

Mulino's Clarification on Fees

Mulino addressed Trump’s concerns pertaining to the canal's fees, clarifying that they are established by experts based on thorough assessments of operational costs and market demand. He noted that Panama has continually worked to expand and improve the canal, asserting the country’s right to manage this critical infrastructure.

Political Implications

Highlighting a growing relationship between the U.S. and Panama, Mulino described his leadership alignment with Trump on various issues. However, he firmly emphasized that "Panamanians may have different views on many issues, but when it comes to our canal, and our sovereignty, we will all unite under our Panamanian flag."

Influence of Turning Point USA

In addition to the canal controversy, Trump's rally underscored the robust influence of the Turning Point USA organization, established by founder Charlie Kirk. The group has significantly mobilized grassroots support among conservatives, helping Trump connect with pivotal demographic groups that have swayed Democratic in recent elections.

Trump's Economic Plans

Furthermore, Trump made announcements about his economic advisory team, signaling his commitment to shaping an effective administration. Australian billionaire Anthony Pratt also pledged financial support to Trump’s inaugural efforts, underscoring the high stakes and strong financial backing as Trump prepares for his next term.

Conclusion