Tag: PANAMA

Panama Canal administrator has rubbished US President-elect Donald Trump’s acquisition bid, saying the critical trade route linking the Atlantic and Pacific Oceans will remain under Panamanian sovereignty and continue operating neutrally for global commerce.

Ricaurte Vásquez also rejected Trump’s claims that China was virtually controlling the canal, saying the operators at both ends are linked to a Hong-Kong based consortium which won the bidding process in 1997. Vásquez said US and Taiwanese companies also managed other ports along the canal, reflecting diversity in structure.

Trump’s threat

Earlier this month, Trump refused to rule out using military force to take back control of the Panama Canal, saying it was “vital to our country.” Trump also said charging transit fees for crossing the canal was “ridiculous”. In response, Vásquez said a system that granted exceptions sought by Trump for US-flagged ships would in fact lead to “chaos.”

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“There’s no discrimination in the fees,” he said. “The price rules are uniform for absolutely all those who transit the canal and clearly defined.” However, the administrator added that exceptions would only be granted to American warships, which would receive expedited passage.

Significance of Panama Canal

The canal, 51-mile long and built by the US in early 20th century, was handed over to Panama on December 31, 1999, under a treaty signed by then-President Jimmy Carter in 1977. The route is vital for American trade, with more than 70 per cent of the canal’s traffic going to or coming from American ports. The route allows ships to ditch the longer and costlier trip around Cape Horn at the tip of South America.

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Earlier, Panama President José Raúl Mulino also declared that the canal will remain in Panamanian hands.

(With inputs from agencies)