US President Donald Trump said that the US would take back The Panama Canal, denouncing China’s influence on the important waterway and the high rates charged to American ships.
In his inauguration speech on Monday, Trump repeated criticisms he has made in recent weeks of the canal, which handles about 3 percent of global maritime trade each year.
The US oversaw the construction of the Panama Canal, which opened in 1914, but returned full control to the Central American nation in 1999. Some officials in Washington are increasingly concerned about the presence of Chinese companies in the area, including a Hong Kong-based company that operates terminals at both ends.
“We didn’t give it to China, we gave it to Panama and we’re giving it back,” Trump said.
The Panamanian government rejected Trump’s comments and accusations of Chinese influence. President José Raúl Mulino said in December that the canal “is and will be Panamanian, promoting global trade.”
China does not control the Panama Canal.
Trump also said that US ships, including military ones, were overloaded in the canal. Severe drought in the canal area, which uses fresh water to operate its locks, has increased the cost of crossings over the past 18 months after it led to restrictions and changes to the way berths are allocated.