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On day 1 in office, US President Donald Trump vows to take back Panama Canal

Jan 21, 2025 04:41 AM IST

President Trump, in his inauguration speech, vowed to reclaim the Panama Canal, accusing Panama of not fulfilling agreements made during its 1999 transfer.

US President Donald Trump, minutes after being sworn in on Monday, pledged that the United States would reclaim the Panama Canal. In his inauguration speech, the Republican leader invoked the 19th-century expansionist doctrine of "Manifest Destiny" while outlining plans for space exploration.

US President Donald Trump gestures during his inauguration ceremony in the rotunda of the United States Capitol in Washington, DC.(AFP)
US President Donald Trump gestures during his inauguration ceremony in the rotunda of the United States Capitol in Washington, DC.(AFP)

Reaffirming his pre-inauguration threat to reassert US control over the canal, Trump again accused Panama of failing to uphold the promises made regarding the final transfer of the strategic waterway in 1999 and of allowing its operation to fall under Chinese influence – claims that the Panamanian government has strongly denied.

"We didn’t give it to China. We gave it to Panama, and we’re taking it back," Trump stated.

He did not provide further details on when or how he intended to carry out this plan, but had previously refused to rule out the possible use of military force, drawing criticism from both Washington’s Latin American allies and adversaries.

Panama's President Jose Raul Mulino responded on X that his country has administered the canal responsibly for world trade, including for the U.S., and that it "is and will continue to be Panamanian."

Trump's reiteration of his threat about the Panama Canal as he began his second term was his most blatant mention of an agenda for territorial expansion that he has laid out in recent weeks.

Ahead of his inauguration, Trump also expressed an interest in acquiring Greenland, presenting the Danish overseas territory as vital for US national security, and even speculated about making Canada a US state.

Encouragement for China and Russia

Critics have accused Trump of using language reminiscent of modern-day imperialism, suggesting that such rhetoric could embolden Russia in its war in Ukraine and provide justification for China should it seek to invade self-governed Taiwan.

"You can’t be a president of peace and take back the Panama Canal," Michael McFaul, former U.S. ambassador to Russia under the Obama administration, wrote on X.

Some analysts have questioned whether Trump is genuinely committed to pursuing what critics view as a land grab, speculating that he may be adopting an extreme negotiating stance to secure future concessions. During his first term from 2017-2021, Trump was known for issuing headline-grabbing threats and pronouncements that ultimately went unfulfilled.

Although Trump did not mention Greenland or Canada in his inaugural address, he hinted at territorial ambitions for his second term.

"The United States will once again consider itself a growing nation, one that increases our wealth, expands our territory, builds our cities, raises our expectations and carries our flag into new and beautiful horizons," he declared.

"And we will pursue our Manifest Destiny into the stars, launching American astronauts to plant the stars and stripes on the planet Mars," Trump added.

Manifest Destiny, a term first used in the mid-1800s, referred to the belief in a divinely ordained right for the U.S. to expand across North America, and was used to justify the annexation of lands from Mexico and Native Americans.

In Monday’s speech, Trump also reiterated his promise to rename the Gulf of Mexico as the Gulf of America.

Trump argued that the U.S. had "foolishly" given the Panama Canal to Panama.

The United States largely built the canal and administered the surrounding territory for decades. However, in 1977, the U.S. and Panama signed agreements that paved the way for the canal’s return to full Panamanian control. The United States officially handed it over in 1999 after a period of joint administration.

"We have been treated very badly from this foolish gift that should have never been made, and Panama’s promise to us has been broken. The purpose of our deal and the spirit of our treaty has been totally violated," Trump stated.

He claimed that US ships were "being severely overcharged and not treated fairly in any way, shape or form."

Panama has maintained that it treats all vessels that transit the canal fairly, and has denied that China controls its administration.

While China does not control or manage the canal, a subsidiary of Hong Kong-based CK Hutchison Holdings has long overseen two ports located near the canal’s Caribbean and Pacific entrances.

Shortly after Trump’s comments on Monday, Panama’s maritime authority announced it had initiated an audit of the Panama Ports Company, controlled by CK Hutchison.

The Panama Canal is an 82-kilometre (51-mile) artificial waterway connecting the Pacific and Atlantic Oceans, critical for U.S. imports of automobiles and commercial goods from Asia, as well as for U.S. exports of commodities, including liquefied natural gas.

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