Donald Trump has reignited tensions between the United States and Panama with his recent threats to retake control of the Panama Canal, one of the world's most important shipping routes. During a series of posts on his social media platform, Truth Social, the president-elect expressed dissatisfaction with the fees Panama charges to U.S. vessels, describing them as unreasonable and calling it a "complete ‘rip-off’ of our country."
Trump stated, "This complete 'rip-off' of our country will immediately stop," urging Panama to adjust its charge structure, which he deemed to be unfair to U.S. commerce. The canal, which cuts two weeks of travel time for shipping between the Atlantic and Pacific Oceans, has been under Panama's control since 1999, following the terms of the Carter-Torrijos Treaty of 1977. This treaty was signed during heightened tensions over the region and paved the way for Panama's full sovereignty over the waterway, known for its remarkable engineering and economic significance.
Responding to Trump's comments, Panamanian President José Raúl Mulino firmly asserted, "Every square meter of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so," underlining the nation's commitment to its sovereignty. His comments represent not just a rebuttal but also serve to reinforce Panama’s determination to maintain control over its most valuable asset.
According to Trump, the Panama Canal is considered "a national asset for the United States, due to its role in America’s economy and national security." He noted how, historically, the United States significantly invested both financially and humanly during the canal's construction; around 5,600 workers perished during the building process. Trump accused Panama of benefiting from U.S. generosity throughout its history, referencing the U.S.’s century-long engagement with the canal region.
"The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal," Trump pointedly remarked. With more than 70% of trade transiting through the canal either originating from or bound for the U.S., the stakes are considerably high. His mention of China’s growing influence over the canal delivers another layer to the controversy, indicating his fears about the potential for Chinese control over this strategic gateway. Indeed, China has been increasing its economic footprint across Central America, including significant investments and partnerships within Panama.
Further complicate matters, the recent history of Trump’s business adaptations within Panama adds another dimension to the concern surrounding this new diplomatic dialogue. His Trump Ocean Club International Hotel and Tower project faced numerous scandals and financial difficulties since its inception. The hotel, which opened amid much fanfare, has been linked to allegations of money laundering and financial irregularities involving former Panamanian officials.
These issues, combined with the timing of Trump’s latest remarks, seem to allude to personal grievances he harbors from past dealings as much as they reflect genuine concern over national interests. For example, Trump’s appointment of Miami-Dade Commissioner Kevin Marino Cabrera as America's ambassador to Panama coincides with his threats, indicating his focus on the bilateral relationship might not only be politically strategic but also personally motivated.
Trump's assertions would likely require clear legal grounds for any direct actions, as analysts reflect on the original treaties which carry no weight for American claims to retake the canal today. “The sovereignty and independence of our country is non-negotiable," Mulino reiterated, emphasizing his government’s position against any threatened intervention by the U.S.
The dispute over the Panama Canal is not just about tariffs or trade; it embodies broader geopolitical issues and the shifting influence within Latin America amid rising Chinese investments. It remains pivotal for the U.S. to engage Panama, not only to maintain ancient treaties but to safeguard its interests against encroaching powers.
With tensions on the rise and U.S. interests at stake, all eyes are on the next steps from both Washington and Panama City. The potential escalation of this situation could have far-reaching ramifications for U.S.-Panama relations and for global trade, especially with the upcoming changes surrounding the new administration.
The future of diplomatic relations hinges on balancing these historical grievances against the need for cooperation moving forward. No resolution is currently visible, and Trump's vocal resurgence of these themes has certainly stirred the pot, alerting relevant global participants to the shifts within this key maritime route.
