US President-elect Donald Trump on December 21 accused Panama of charging excessively for letting US ships use the Panama Canal. Trump threatened a US takeover of the canal if Panama did not comply.
- About Panama Canal
- The Panama Canal is a vital waterway connecting the Atlantic and Pacific Oceans, serving as a crucial artery for global trade.
- The canal’s history is intertwined with the United States, from its construction to its eventual handover to Panama.
- The canal significantly shortens maritime routes, saving approximately 7,000 nautical miles (13,000 km) for ships traveling between the Atlantic and Pacific.
- The 51-mile (82km) canal cuts through the middle of Panama, a country occupying the strip of land between Central America and South America.
- It handles around 14,000 transits annually, accounting for about 6% of global trade by value.
- Challenges like fluctuating water levels due to climate conditions have impacted operations.
- As a result of severe drought in late 2023, only 22 ships crossed the canal each day instead of the usual 36.
- Construction and Early History:
- Built between 1904 and 1914, the Panama Canal was a monumental engineering achievement, heavily supported and financed by the U.S.
- The canal was established after Panama gained independence from Colombia in 1903, facilitated by a U.S.-backed coup.
- The Hay-Bunau-Varilla Treaty of 1903 granted the U.S. the right to build and control the canal, along with perpetual rights to the Panama Canal Zone.
- Who controls canal?
- Tensions arose between Panamanians and U.S. authorities, leading to protests and demands for Panamanian sovereignty over the canal.
- In 1977, the Torrijos-Carter Treaties marked the start of a phased transfer of canal control from the U.S. to Panama.
- Full control of the canal was handed over to Panama on December 31, 1999.
- The Panama Canal remains a vital link in international trade, symbolizing both cooperation and past controversies in U.S.-Panamanian relations.
