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Reports say President-elect Donald Trump has threatened to take back control of the Panama Canal, claiming that Panama charges unfairly high rates for using the passage. During a speech to supporters in Arizona, Trump also warned against the Canal “falling into the wrong hands,” mentioning possible Chinese influence.
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Panama’s president responded sharply to Trump’s comments, suggesting that Panama values fair fees and good relationships with other countries. Many South American observers find Trump’s comments puzzling, given that Panama’s leader is seen as a pro-business conservative who has tried to strengthen ties with the United States.
From an agricultural standpoint, some experts stress the Canal’s importance to U.S. farmers. “Seventy-two percent of all cargo transiting the Panama Canal is either coming or going to the U.S., including a substantial portion of U.S. agricultural exports,” says Farm Bureau’s Betty Resnick.
Because the Canal handles such a large share of U.S. goods, any changes to how it is managed—or how much it costs to use—could have a big effect on American farmers.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.