Former President Donald Trump ignited controversy with his recent comments about the Panama Canal, accusing the Panamanian government of imposing excessive transit fees on American vessels and pressuring for immediate reductions. During his post on the platform Truth Social, Trump described the fees as "absurd" and framed them as acts of extortion, declaring, "this kind of complete 'racketeering' against our country must stop immediately."
Since the canal's completion by the United States in 1914, the strategic waterway has been pivotal for international maritime trade, allowing ships to transit between the Atlantic and Pacific Oceans efficiently. Panama assumed full control of the canal management and operations by the end of 1999, following the 1977 treaties signed by then-President Jimmy Carter. Despite this transfer, Trump's rhetoric suggests he sees the fees charged to American vessels as unacceptable and burdensome.
According to Trump, "the Panama Canal plays a key role in our economy and national security, serving as one of America’s important national assets," emphasizing how the canal drastically cuts shipping times for American commerce. He added, "the U.S. is the number one user of the Panama Canal, with over 70% of transiting cargo coming from or going to American ports."
At the heart of Trump's criticisms is not just the cost to U.S. maritime commerce but rising concerns over potential Chinese influence over the canal. Trump cautioned, "the existence of the canal is not for the benefit of others but rather as a symbol of cooperation between us and Panama. If the moral and legal principles of this generous gesture are not respected, we will demand the immediate and unconditional return of the canal to the United States."
His remarks suggest significant discontent with the post-1999 status quo, and they resonate with some Republican voters who favor stronger assertions of American interests internationally. By openly discussing the possibility of reclaiming the canal, Trump evokes sentiments shared during his presidency and reflects potential shifts toward interventionist policies.
Scholars and officials from Panama have responded sharply to Trump's latest assertions. Julio Yao, an academic at the University of Panama, characterized Trump's statements as "arrogant and threatening," asserting there is no legal foundation to support Trump’s claim for the canal’s return. He noted, "the people of Panama fought hard to regain ownership and sovereignty over the canal, having historically garnered little benefit during the time of U.S. control."
Jones Cooper, the vice-dean at the Panama Canal and International Relations Institute, emphasized the legitimacy of Panama's control. He told reporters, "the Dominican Republic is the rightful custodian of the Panama Canal. Claims by former U.S. officials to reacquire the canal are baseless and utterly absurd."
Trump's comments have raised alarm not only for their tone but for the geopolitical undertones they signal. While Trump is careful to point out the significant role China plays through its investments and port management contracts around the canal area, he maintains the view it must not fall under improper control, implicitly asserting the U.S. should have the final say over its operational integrity.
Panama's maritime authority states the canal earns significant revenue from transit fees, contributing around $2.47 billion to the country's economy for the fiscal year 2024, but Trump’s narrative seeks to diminish this success by highlighting perceived injustices. His stance exemplifies the complexity of the U.S.-Panama relationship, marred by history and characterized by mistrust and secure economic interests.
Despite Trump's abrasive discourse, analysts remain divided on the actual feasibility of his suggestions. No legal grounds substantiate the seizure of the canal, as international law and diplomatic agreements between the U.S. and Panama post-1999 uphold the latter's sovereign rights over the canal.
Currently, the Panama Canal Authority operates independently under the Panamanian government, with oversight ensuring it meets international shipping demands. Any unexpected departure from this arrangement due to geopolitical tensions could have far-reaching consequences for global trade and stability.
It remains unclear how Trump's comments will impact factual relations with Panama moving forward, though they certainly stir provocative dialogue surrounding America's historical oversight of the canal and its influence. Cautionary voices from Panamanian scholars are unlikely to silence Trump's base, particularly as he capitalizes on dissatisfaction against global financial systems perceived as inequitably favoring foreign entities.
Trump’s recent outbursts serve as both a reminder of the turbulent waters of Panamanian sovereignty mixed with American interests and as fodder for future discussions about global maritime trade dynamics.
