Panama
The Panama Canal is a crucial shipping route between the Pacific and Atlantic oceans – one that saves ships the hassle of sailing around Cape Horn, the southernmost tip of South America – so, of course, Donald Trump thinks he wants it. And, of course, he spreads lies about it to try to get people on his side.
He falsely claims, for example, that American ships pay more at the canal, even though every single vessel pays the same rate according to tonnage and type (around 75 percent of the cost is a toll, and 25 percent is for services like tugboats and escorts). It’s true that costs have increased, but that is mainly because, since the canal’s water level has been lower, fewer ships can use it each day. During these times, vessels have to pay higher auction prices for preferred canal entry slots. Donald has also claimed, falsely, that Panama has given control of the canal to the Chinese – forcing Panamanian President José Raúl Mulino to publicly deny that this is the case (Donald may be confused because the canal has ports on both sides. Two are operated by Chinese companies and the other three by American, Taiwanese and Singaporean companies. But, obviously, operating a port is not the same thing as having “control” of the canal).
In the early 1900s, the United States took over canal construction from the French. It was completed in 1914. For over sixty years, the United States controlled the canal and Canal Zone, establishing multiple military bases along the way. Eventually, U.S. control of the canal along with its military presence, which included troops, caused tension with Panamanians and riots broke out in 1964. In 1977, President Jimmy Carter signed two treaties that 1) provided for the transfer of the canal from the U.S. to Panama by 1999, and 2) ensured that the canal would always remain open to all nations, establishing a permanent “regime of neutrality” over the canal. In 1999, Panama gained full control of the canal and, today, the independent Panama Canal Authority manages its operations (including the locks that raise and lower vessels).
When President Carter signed the two treaties, there were ongoing concerns about operational management and integrity, but the Authority has done a great job of managing the canal and maintaining its independence from the government of Panama (the canal’s budget is reviewed by its board of directors, the Panama president’s cabinet and Panama’s congress and, even though its managed independent of the government, any excess earnings are transferred to the government of Panama… although it doesn’t break the bank because the Authority has to budget for regular maintenance and capital expenditures which, judging by the third set of locks that cost $5.25 billion, aren’t cheap).