Panama Canal Dispute: Panama Rejects US Claim on Free Passage for Government Vessels
The Panama Canal, a vital waterway connecting the Caribbean Sea to the Pacific Ocean, has been at the center of a diplomatic dispute between Panama and the United States. Around 40% of US container traffic passes through the narrow canal, making it a crucial shipping route for American businesses.
Panama Rejects US Claim
Panama’s President, Jose Raul Mulino, has rejected the US claim that the country has agreed to allow US government vessels to pass through the canal for free. In a statement, Mulino called the US assertion "intolerable, simply and plainly intolerable" and stated that he rejects "bilateral relations based on lies and falsehoods."
Background on the Dispute
The dispute between Panama and the US began when US President Donald Trump refused to rule out the use of force to seize the canal, which was built by Washington over a century ago and later handed over to Panama. Trump has loudly complained that US vessels are being overcharged to use the shipping route and has expressed concerns about Chinese investment in the canal.
Panama Canal Authority Rejection
The Panama Canal Authority, which runs the waterway, quickly rejected the US claim, stating that it had "not made any adjustments" to its tariffs. US government vessels, primarily from the navy, make up a small portion of the ships that pass through the canal.
Chinese Investment and Belt and Road Initiative
The US has also expressed concerns about Chinese investment in the canal, with Trump and Secretary of State Marco Rubio warning that Beijing could close the canal to the US in a crisis. However, Panama has forcefully denied Trump’s claim that China has a role in running the canal.
In a key concession to Washington, Panama has pulled out of China’s massive Belt and Road Initiative (BRI) infrastructure programme. Mulino confirmed that the Panamanian embassy in Beijing had given China the required 90-day notice of its decision not to renew its involvement in the BRI, which it joined in 2017.
Concession to Washington
Mulino’s decision to withdraw from the BRI is a significant concession to Washington ahead of scheduled telephone talks between Trump and Mulino tomorrow. Panama is the first Latin American country to announce its withdrawal from the trillion-dollar programme, which operates in over 100 countries.
Conclusion
The dispute between Panama and the US over the Panama Canal is a complex issue that involves trade, diplomacy, and national security concerns. While both sides have expressed their positions, it remains to be seen how the situation will unfold. One thing is clear, however, is that the Panama Canal remains a vital shipping route that plays a crucial role in global trade.
Frequently Asked Questions
- What is the Panama Canal?
The Panama Canal is a 50-mile long waterway that connects the Caribbean Sea to the Pacific Ocean. - What is the significance of the Panama Canal?
The Panama Canal is a crucial shipping route for global trade, with around 40% of US container traffic passing through the canal. - What is the dispute between Panama and the US about?
The dispute is over the US claim that Panama has agreed to allow US government vessels to pass through the canal for free, which Panama has rejected. - What is the Belt and Road Initiative (BRI)?
The BRI is a massive infrastructure programme launched by China to promote global trade and investment.