President-elect Donald Trump has repeatedly suggested that the United States take control of the Panama Canal, the shipping route that crosses Central America, unless tolls are lowered.
Panama's leader responded in a recent statement by saying the waterway is not for sale. Since then, Trump has repeatedly written about the channel.
This is the latest in a series of similar statements by Trump, who recently offered the U.S capture Greenlandhe is also an idea floated during his first presidency. He also joked about Canada be a US state.
Here's what you need to know about the history of the Panama Canal and the United States' involvement in the sea route.
History of the Panama Canal
The Panama Canal was built by the United States between 1904 and 1913 and opened in 1917. The canal cost about $375 million to build, making it the most expensive construction project in U.S. history at the time, according to Panama Canal Authority. Thousands workers died during the grueling construction process.
The canal connects the Pacific and Atlantic oceans, offering ships a shortcut to avoid bypassing South America. The canal revolutionized shipping in the region.
The United States acquired the rights to build and operate the canal in the early 20th century, but at the time Panama was in the process of seceding from Colombia, whose senate refused to ratify a treaty that would have allowed construction of the canal, according to Office of the State Department Historian.
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In order for the canal to be built, then-President Theodore Roosevelt supported Panamanian independence, and in 1903 the United States and Panama signed a treaty that established permanent US rights to the “Panama Canal Zone,” which extended across the country. However, the man who negotiated on behalf of Panama did not have formal approval from the country's government and had not lived in the country for 17 years, leading many Panamanians to question the validity of the treaty, according to the Historian's Bureau.
During the 20th century, the United States and Panama dealt with tensions over the canal, including a rebellion in the 1960s that led to a brief severance of diplomatic relations between the countries. In 1967, the United States and Panama began negotiating a new treaty, eventually reaching an agreement, but a change in elected leaders and a coup in Panama led to the creation of a new government in the Central American country, according to the Office of the Historian. Because of this, the negotiations “suffered a major breakdown.”
Negotiations continued throughout the 70s. When Jimmy Carter was elected president, he made completing the negotiation process a priority, and in 1977 two treaties were introduced to the US Senate: the Neutrality Treaty, which stated that the US could use its military to defend the canal, allowing “perpetual US use” of the waterway, and the Panama Canal Treaty, which would have ended the existence of the Panama Canal Zone and allowed the transfer of Panama Canal in December 1999. Under the second treaty, Panama will also have primary responsibility for protecting the canal.
Contracts commonly known as The Torrijos-Carter Treatieswere signed on September 7, 1977. In the spring of 1978 The US Senate voted to ratify the treaties, and Carter signed them into law on September 27, 1979. There was a channel transferred to Panama December 31, 1999 during the Clinton administration.
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Who controls the Panama Canal?
The Panama Canal has been owned and operated by the Panama Canal Authority, a government agency, since 1999. The agency was created shortly before the canal was returned to Panama.
Since taking control of the waterway, the Panama Canal Authority has invested billions in expanding the canal. The canal expansion, which opened in 2016, cost $5.25 billion, doubling the waterway's capacity and reducing global maritime costs by about $8 billion a year. This was previously reported by CBS News. Extension is also allowed big ships to pass.
Who uses the Panama Canal?
About 40% of the world's cargo traffic passes through the Panama Canal, This was previously reported by CBS Newsalthough recent droughts have forced operators to cut back on vessel crossings.
About two-thirds of the canal's traffic either goes to or leaves the United States, although ships from around the world use the waterway every day, according to Panama Canal Authority.
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Between 13,000 and 14,000 ships use the canal each year, the agency said.
Clash between Trump and the President of Panama
Trump first appeared to suggest that the United States seize the Panama Canal Post by TruthSocial December 21.
He also raised the issue in front of a crowd of supporters at Turning Point's AmericaFest on Sunday, where he said Panama was charging “exorbitant prices” and said “the total looting of our country will stop immediately.”
“If the principles, both moral and legal, of this generous gesture of giving are not upheld, we will demand that the Panama Canal be returned to the United States of America in its entirety, quickly and without question,” Trump said.
Trump said on Wednesday he would highlight Miami-Dade International Trade Consortium member Kevin Marina Cabrera will become the US ambassador to Panama. In that announcementhe accused Panama of “ripping us off at the Panama Canal far beyond their wildest dreams.”
Trump continued to post online that the US was taking back ownership of the channel and referenced the channel in a Christmas message shared on TruthSocial. He warned of potential Chinese influence on the navigable waterway, although there is no Chinese presence in the canal, according to Reuters. The Hong Kong-based company operates two ports along the canal, Reuters reports.
This was stated by the President of Panama, Jose Raul Mullina a statement shared on social media that “every square meter” of the canal “belongs to Panama and will belong to Panama.”
– We will see that! Trump wrote on the Internet in response.