Torrijos-Carter Treaties

News: Donald Trump has called the transfer of Panama Canal to Panama as foolish. This has brought Torrijos-Carter Treaties in the news. 

About Torrijos-Carter Treaties 

• They are two treaties which were signed by the United States and Panama in 1977. 
  • Panama Canal Treaty: It provided for joint US-Panama control until December 31, 1999, after which Panama will take full control of canal operations and become primarily responsible for its defense. 
  • Permanent Neutrality Treaty: It declared the canal to be open for all nations, though the US has the right to defend the neutrality of the canal and have priority passage in military emergencies. 

Reasons for Trump being upset with Panama 

• High Transit Fees: Panama Canal Authority (ACP) has imposed high transit fees on US vessels. In 2023, due to droughts in Lakes Gatun and Alhajuela, ACP has reduced the number of slots for crossing ships by 36%, leading to an increase in transit fees. 
• Increased Chinese presence: Chinese presence in the Panama Canal has increased significantly, especially after 2017, when Panama became the first Latin American country to sign a Belt and Road Initiative (BRI) agreement. 

Response of Panama’s President Jose Raul Mulino 

• He defended the transit rates by arguing that transit rates are set as per international standards and decided by a procedure. 
• He denied the claims of Chinese involvement, citing the importance of sovereignty for the people of Panama.