US Ships to Pass Panama Canal Free After Trump’s Threat.
The impact of former US President Donald Trump’s warning about the Panama Canal is now visible. Panama has decided to remove the fee for US government ships passing through the canal. This decision was announced after US Secretary of State Marco Rubio visited Panama. The move is expected to save millions of dollars for the US government each year.
US Government Confirms Policy Change
The US State Department has confirmed that American government ships will no longer have to pay transit fees to pass through the Panama Canal. This decision follows concerns raised by Trump over China’s growing influence in the region. The policy change could benefit US maritime trade significantly, given the importance of the canal for American shipping routes.
Trump’s Concerns About Chinese Influence
Donald Trump has been vocal about his concerns regarding the Panama Canal since winning the presidential election. He has repeatedly claimed that China is secretly controlling the canal’s operations. Trump stated that the canal was originally a US project, gifted to Panama, and should not be indirectly controlled by China. In his first speech after taking office, he declared, “We gave the canal to Panama, not to China. Now we will take it back.”
Marco Rubio’s Diplomatic Visit to Panama
US Secretary of State Marco Rubio visited Panama last Sunday. During his meeting with Panamanian President Jose Raul Mulino, Rubio urged Panama to reduce China’s growing influence in the region. He warned that if no action was taken, the US government would consider further steps to protect its rights under existing agreements. Rubio also toured the canal with Administrator Ricaurte Vasquez, emphasizing its importance to the US economy and global trade.
Strategic Importance of the Panama Canal
The Panama Canal is a key strategic waterway in global trade. The 82-kilometer canal connects the Atlantic Ocean to the Pacific Ocean and handles about six percent of the world’s maritime trade. The canal plays a crucial role in US trade, as 14 percent of American goods pass through it.
For example, cargo ships traveling from New York to San Francisco via the Panama Canal cover a distance of 8,370 kilometers. Without the canal, ships would have to travel around South America, covering more than 22,000 kilometers. This makes the canal a lifeline for American trade and commerce.
Economic Dependence of Panama on the Canal
The Panama Canal is not just crucial for the US but also for many South American and Caribbean countries. It facilitates the movement of goods from Asia to the Caribbean and South America. The canal generates billions of dollars in revenue for Panama’s economy, as it is managed by the Panama Canal Authority. If the canal were to come under foreign control or face disruption, it could significantly impact global supply chains.
The History of the Panama Canal’s Construction
The construction of the Panama Canal began in 1881 under French leadership. However, due to various challenges, including diseases and financial issues, France was unable to complete the project. The United States took over and completed the canal in 1914. For many years, the US maintained control over the canal. However, in 1999, the US officially transferred control of the canal to Panama under a treaty agreement.
Today, the Panama Canal is considered one of the greatest engineering achievements of the modern world. It is listed among the seven engineering wonders and continues to be a critical asset in international trade and maritime transport.
Potential Risks of US Intervention
The US administration’s recent stance on the Panama Canal raises questions about future geopolitical tensions. If the US were to take action beyond diplomatic negotiations, it could disrupt global trade and create conflicts with other nations that rely on the canal. Furthermore, any military or economic intervention could strain US-Panama relations and impact diplomatic ties with China.
A Key Trade Route Under Global Focus
The decision to remove transit fees for US government ships marks a significant shift in US-Panama relations. While this benefits the US economy, the underlying issue of Chinese influence remains unresolved. The Panama Canal will continue to be a focal point of global trade and political discussions in the coming years.
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