Trump Vows to Take Back Panama Canal During Inaugural Address

President Donald Trump vowed to take back the Panama Canal during his inaugural speech on Monday, saying that the U.S. has "been treated very badly by this foolish gift that should have never been made," referring to the 1977 agreement with the Latin American country that would eventually lead to Panama retaining full control of the canal after 1999.

"Panama's promise to us has been broken," added Trump. "The purpose of our deal and the spirit of our treaty has been totally violated. American ships are being severely overcharged and not treated fairly in any way, shape or form."

Trump then went on to claim that "China is controlling the Panama Canal," and that, given those circumstances "we're taking it back."

President Trump has repeatedly voiced his intention to take the Panama Canal back under U.S. control since winning the elections. Some some analysts have interpreted his stance as an attempt to pressure the country into lowering canal fees for U.S. goods, some officials are warning that the rhetoric looks to put a dent on China growing influence in Panama and Latin America in general.

Panamanian president José Raúl Mulino has repeatedly rejected the notion that there is Chinese interference in the Panama Canal. "There is absolutely not any interference" from the country, Mulino said during a press briefing on December 26, adding that "there are no Chinese soldiers in the canal, for the love of God." "There is not a single Chinese soldier in the canal."

Mulino went on to detail Panama is open to investment from any interested parties: "If they're Chinese, if they're Costa Rican, if they're American, all who want to invest in the country are welcome." "There is no discrimination here in foreign investment," he added.

There are, however, concerns over Chinese influence stemming from the involvement of CK Hutchison Holdings, a Hong Kong-based company operating ports at both ends of the canal. As The New York Times explained in an expose back on Thursday, the company's links to Hong Kong and China's national security laws have raised concerns that Beijing could compel the company to assist in intelligence gathering.