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Head of the Panama Canal rejects Trump demand

Donald Trump, President-elect of the USA, has demanded that American ships be given preferential treatment at the Panama Canal.

The head of the responsible authority, Ricaurte Vásquez Morales, rejected the demand as well as the accusation that the canal is under Chinese control.

“Rules are rules and there are no exceptions,” said Vásquez Morales, making it clear that there would be no preferential treatment for US ships. Trump had claimed that the transit fees on the Panama Canal were too high and “unfair”. He also considers the waterway to be under the control of China, pointing out that a company based there operates two ports at both ends of the canal (Colón and Balboa). However, the canal itself is operated by the Panama Canal Authority, whose board of directors is elected by the government.

“Chaos” feared at the Panama Canal

Vásquez Morales fears that there will be “chaos” on the canal if US cargo ships are given preferential treatment. No nation’s ships could be discriminated against – this would be against international law. Furthermore, US ships would not have to pay higher fees than others. However, the head of the authority emphasised that US Navy ships would be given preferential treatment in accordance with an agreement in order to be able to move quickly between the Atlantic and Pacific.

At a press conference, Trump recently suggested reclaiming the canal built by the USA in 1914. He also did not rule out military action.

Control of the waterway – one of the most important in the world – was transferred in full to Panama in 1999, after the late President Jimmy Carter signed an agreement to hand it over in 1977.

Today, the USA is the largest user of the canal; American ships account for 74% of all transits. China follows in second place with 21%. Last summer, there was an increase in congestion on the Panama Canal after the water levels dropped. The construction of a new reservoir should solve these problems in future.

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