Why has Trump called the Panama treaty ‘foolish’?

Why has Trump called the Panama treaty ‘foolish’?

Sub : IR

Sec: Places in news

Context:

• US President-elect Donald Trump threatened to demand the return of the Panama Canal to the United States, calling the 1999 transfer treaty “foolish.”
• He cited concerns over high transit fees for US vessels and Panama’s increasing ties with China as the main reasons for his dissatisfaction.

Trump’s concerns:

• High Transit Fees: The Panama Canal Authority (ACP) increased fees for US vessels in 2023 as Lakes Gatun and Alhajuela experienced severe drought which led to reduced capacity for canal operations.
• Chinese Influence: In 2017, Panama became the first Latin American country to sign onto China’s Belt and Road Initiative (BRI). Since then, Chinese investment has surged in Panama.

About Panama Canal:

• The Panama Canal is an 80-kilometer-long artificial waterway connecting the Atlantic and Pacific Oceans. It cuts across the narrowest point of the Isthmus of Panama.
• The canal is a key part of global maritime transportation, allowing ships to travel between the Atlantic and Pacific Oceans without going around Cape Horn.
• Approximately 6% of global maritime trade passing through the canal.
• The canal was completed in 1914 and the US controlled it until December 31, 1999.
• The canal was handed over to Panama in 1999 under the Torrijos-Carter Treaties.

The Torrijos-Carter Treaties (1977):

1. Panama Canal Treaty: This treaty abolished the Panama Canal Zone and transferred full control of the canal to Panama.
2. Permanent Neutrality Treaty: This treaty declared the Panama Canal as neutral, open to ships from all countries. It also gave the US the right to defend the neutrality of the canal and priority passage in military emergencies.