The Panama Canal: Engineering Marvel and Global Trade Hub

Former President Donald Trump’s recent comments about retaking control of the Panama Canal have sparked international controversy and raised questions about U.S. foreign policy.

At a Glance

Trump threatens to demand the return of the Panama Canal to U.S. control
Panamanian President José Raúl Mulino firmly rejects Trump’s claims
Trump cites unfair charges and Chinese influence as reasons for his stance
The Panama Canal has been under Panamanian control since 1999
Legal experts doubt the feasibility of Trump’s proposed action

Trump’s Controversial Statements

During a recent rally at Turning Point USA’s AmericaFest in Arizona, former President Donald Trump made headlines by expressing his intention to take back control of the Panama Canal. Trump’s comments have ignited a diplomatic firestorm and raised concerns about the future of U.S.-Panama relations.

Trump criticized the current administration of the canal, claiming that the United States is being “ripped off” and facing unfair treatment. He specifically mentioned “ridiculous” and “unfair” fees imposed on U.S. naval and commercial interests. The former president also hinted at growing Chinese influence in the region as a reason for his proposed action.

Donald Trump suggests Panama Canal be returned to US control https://t.co/X1JCNTTkox

— The Hill (@thehill) December 23, 2024

Panama’s Strong Response

The reaction from Panama was swift and unequivocal. Panamanian President José Raúl Mulino forcefully rejected Trump’s claims, emphasizing Panama’s sovereignty over the canal. In a statement that left no room for ambiguity, Mulino declared:

“As president, I want to clearly state that every square meter of the Panama Canal and its adjoining zone is Panama’s and will remain so. The sovereignty and independence of our country is non-negotiable.” Mulino said.

This strong response underscores the significance of the canal to Panama’s national identity and economy. The Panama Canal Authority, an independent government agency, has administered the canal since its transfer from U.S. control in 1999, following the implementation of the Torrijos-Carter Treaties signed in 1977.

Historical Context and Legal Considerations

The Panama Canal, originally built by the United States from 1904 to 1914, has a complex history intertwined with U.S. foreign policy. The U.S. initially helped Panama gain independence from Colombia to facilitate the canal’s construction. For decades, the U.S. administered the canal until the Torrijos-Carter Treaties paved the way for its transfer to Panamanian control.

“We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.” – Trump

Legal experts and analysts are skeptical about the feasibility of Trump’s proposal. The treaties that facilitated the canal’s transfer to Panama do not contain provisions allowing the United States to unilaterally retake control. Any attempt to do so would likely face significant legal and diplomatic challenges on the international stage.

The Panama Canal is a great creation of the Panamanian people, and China has always supported their just struggle to maintain sovereignty over the canal, Chinese FM spokesperson Mao Ning said on Mon, commenting on US President-elect Donald Trump's claim that the canal is “an… pic.twitter.com/8c76CGjQnV

— Global Times (@globaltimesnews) December 23, 2024

Economic and Strategic Importance

The Panama Canal remains a crucial artery for global trade, with the United States being its largest user. Over 70% of canal transits are related to U.S. ports, highlighting its continued importance to American commerce. Under Panamanian control, the canal has undergone modernization and expansion to meet the demands of 21st-century shipping.

Recent increases in canal fees have been attributed to severe droughts affecting water levels and reduced ship slots. However, transit operations have largely normalized, according to recent reports. The canal’s strategic significance continues to attract international attention, including from China, which has invested in infrastructure projects in Panama.

As the debate over the Panama Canal’s future continues, it remains a symbol of both engineering marvel and geopolitical complexity. The coming months may see further developments in this unfolding story, with potential implications for U.S. foreign policy and international trade relations.