Panama and US Reach Deal on Canal Access
Panama has agreed to grant the US free passage for its warships through the Panama Canal and will withdraw from China’s Belt and Road Initiative, following a visit by Secretary of State Marco Rubio.
Background
The Panama Canal is a strategic waterway connecting the Atlantic and Pacific oceans and is a major choke point for global trade. The US built the canal in the early 20th century and ceded it back to Panama in 1999 under a treaty signed by President Jimmy Carter in 1977.
Recent Tensions
In December, US President Donald Trump complained about what he called “exorbitant” rates that Panama charges the US Navy and companies for using the canal and threatened to retake control. Trump also accused China of running the Panama Canal and vowed to take it back or face “something very powerful”.
Deal Reached
Panama has agreed to grant the US free passage for its warships through the Panama Canal and will withdraw from China’s Belt and Road Initiative, following a visit by Secretary of State Marco Rubio. The canal authority has also agreed to “optimise transit priority” of US Navy ships through the waterway.
Reactions
US National Security Adviser Mike Waltz called Panama’s decision to withdraw from the Belt and Road Initiative a “step in the right direction”, while a US official said that while positive, the move does not fully resolve concerns about the canal.
Conclusion
The deal reached between Panama and the US is a significant step forward in resolving tensions over the Panama Canal. The agreement will allow the US to maintain its access to the canal and will also help to reduce tensions with China.
Frequently Asked Questions
Q: What is the Panama Canal?
A: The Panama Canal is a strategic waterway connecting the Atlantic and Pacific oceans and is a major choke point for global trade.
Q: Who built the Panama Canal?
A: The US built the Panama Canal in the early 20th century.
Q: What is the Belt and Road Initiative?
A: The Belt and Road Initiative is a global infrastructure development strategy proposed by China.
Q: What is the significance of the Panama Canal?
A: The Panama Canal is a major choke point for global trade and is a strategic asset for the US and other countries.
Q: What are the implications of Panama’s withdrawal from the Belt and Road Initiative?
A: Panama’s withdrawal from the Belt and Road Initiative may help to reduce tensions with China and may also have implications for global trade and economic relations.
