President Donald Trump renewed his criticism of the transfer of the Panama Canal to Panama, saying China was seeking greater influence over the strategic waterway and pledging that the United States would not allow that to happen.
Speaking at the dedication of the Theodore Roosevelt Presidential Library in Medora, North Dakota, on Wednesday (local time), Trump praised former President Theodore Roosevelt for overseeing construction of the canal, describing it as one of the greatest engineering achievements in US history.
"And now China is trying to take over the Panama Canal, and we're not going to let that happen," Trump said. Trump repeated his longstanding criticism of the US decision to transfer control of the canal, saying it had been a mistake. "We gave it away," he said. "It was the most expensive thing we ever built, and it was also the most profitable thing we ever built."
He also claimed that Panama sharply increased transit fees after assuming control of the canal. "The first thing they did... they raised the prices for the ships by four times, and they didn't lose one ship. And then they raised it again twice, and they didn't lose one ship," Trump said.
The President made the remarks while discussing Roosevelt's legacy, saying the former President's leadership extended beyond conservation and domestic reforms to major infrastructure projects, including the Panama Canal. Trump did not announce any new policy or action concerning the canal.
The Panama Canal was built by the United States in the early 20th century under President Theodore Roosevelt. Under treaties signed in 1977, the United States gradually transferred control of the canal to Panama, completing the handover on December 31, 1999.
The canal is operated by the Panama Canal Authority, an autonomous agency of the Panamanian government. The 82-km canal connects the Atlantic and Pacific oceans and is one of the world's busiest shipping routes, carrying about five per cent of global maritime trade.
It is strategically important for international commerce, including trade involving India, where changes in shipping costs or disruptions to canal traffic can affect freight rates and supply chains.