President-elect Donald Trump has ignited renewed controversy over the Panama Canal, threatening to retake the strategic waterway just 25 years after it was handed over to Panama. This provocative assertion follows Trump's claims of increased transit fees imposed by Panama, which he deems exorbitant.
On the campaign trail and through social media, Trump has argued, "We will demand the Panama Canal be returned to the United States of America, in full, quickly and without question." He insists the United States is being "ripped off, saying the fees charged are unfair, particularly considering the longstanding support the U.S. has provided Panama.
The Panama Canal, completed in 1914 and connecting the Atlantic and Pacific Oceans, was initially under U.S. control until the late 1990s. The transition was formalized through the 1977 treaties negotiated by President Jimmy Carter's administration, which stipulated the handover of the canal to Panama on December 31, 1999.
Since the transition, Panama has effectively managed the canal, even overseeing significant expansions to accommodate larger vessels. Despite rising fees largely attributed to climate-induced droughts affecting water levels, Panama's President José Raúl Mulino has maintained, "Every square meter of the canal and the surrounding area belongs to Panama and will continue belonging to Panama.”
Trumps’ rhetoric has raised eyebrows, as experts question the U.S. legality and feasibility of reclaiming the canal. Jorge Luis Quijano, the former administrator of the Panama Canal, stated emphatically, "Legally, there's no way, under normal circumstances, to recover territory..."
Trump has likened the situation to his stance on other international matters, insinuations aimed at bolstering national pride and potentially rallying support from the American public. He stated, "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity..." showing no indication of backing down.
This assertion has not come without pushback. Leaders and populations across Central America have expressed solidarity behind Panama’s sovereignty. Mulino's statements highlight the importance of maintaining the canal's integrity as part of Panama's national identity and security.”
While the Panama Canal remains integral for U.S. trade and military strategy, Trump's threats could signify potential issues. Benjamin Gedan, director of the Latin America Program at the Woodrow Wilson International Center for Scholars, observed, “If you're going to pick a fight with Panama on this issue, you could not find a worse one than the canal.”
Given the strategic importance of the canal, which sees fluctuated traffic and sustained debates on sovereignty and control, the political ramifications of Trump’s comments can affect relations with not only Panama but also other Central American nations.
Historically, the U.S. has faced criticism for its prior involvement with the canal—from orchestrated invasions to political maneuvering. The U.S. intervention during the early 20th century to support Panama’s independence was driven by its desire to control the canal construction initiated by French efforts under Ferdinand de Lesseps, which failed disastrously. With invasion efforts, construction also took lives and drew widespread negative sentiment.
Fast forward to today, as Panama navigates its place on the global stage, the increased scrutiny of its management of the canal speaks to broader geopolitical issues. Factors such as China’s growing influence and strategic alliances raise questions over where power will lay next, with the specter of U.S. dominance now challenged.
Trump's staunch assertions point to complexity and potential escalation as longstanding oceanic routes fall under the microscope of national interests, economic disagreements, and historical grievances.
Moving forward, many are left to ponder what Trump's next steps might be if his administration aims to reconsider the United States' relationship with Panama, especially if it affects current treaties put forth decades ago. A push for military action, as implied by Trump, could spiral outcomes detrimental not just to U.S.-Panama relations, but also regional stability.
The future remains uncertain, but one thing is clear—Trump's Panama Canal controversy has illuminated the fragility of international relations and the navigation needed when it involves matters of national security, economics, and legacy.
