Trump threatens to “take over” the Panama Canal if transit fees aren’t lowered

US President-elect Donald Trump threatened to take control of the Panama canal if authorities fail to reduce transit fees for US ships, BBC reports, citing a speech given by Agent Orange in Arizona earlier this week. If the “exorbitant prices” for vessel transits are not reduced the US “will demand that the Panama Canal be returned to [them], in full, quickly and without question,” Trump said. Around 75% of cargo transiting through the Panama Canal originated from or was traveling to the US in the last fiscal year.

A swift rebuke: Panama’s sovereignty is non-negotiable, with “every square metre” of the canal and surrounding area under its ownership, Panamanian President Jose Raul Mulino said in response. The canal maintains a neutrality treaty which safeguards fair entry for all nations and non-discriminatory tolls. Panama took complete control of the canal in 1999, following a period of joint operation after the US gave up control in 1977.