Who owns the Panama Canal and what does Trump want with it?
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US president-elect has threatened to retake canal over ‘exorbitant’ rates but Panama’s president rejects his claims. Donald Trump has threatened to take over the Panama Canal, but what is the waterway and why is it so important?. Here’s what you need to know.
The canal is a major waterway connecting the Atlantic and Pacific oceans, allowing sea travellers to avoid an additional 7,000 nautical miles (13,000km) around the tip of South America. The 51-mile (82km) canal cuts through the middle of Panama, a country occupying the strip of land between Central America and South America.
In the year to 30 September, almost 10,000 ships passed through the canal, carrying 423m tons, including food, minerals and factory-made products. More than 40% of consumer goods traded last year between north-east Asia and the US east coast were transported through the canal.
The US is the canal’s biggest customer, responsible for about three-quarters of the cargo moving through it each year, while China is the second-biggest customer. The government of Panama has owned and operated the canal through a dedicated agency, the Panama Canal Authority, for 25 years.
The US operated the canal during the 20th century, taking control of the canal zone and beginning construction in 1904 after helping Panama win independence from Colombia. The canal opened in 1914, revolutionising global shipping and allowing thousands of cargo freighters and American battleships to pass through each year.
