Donald Trump, the President-elect of the United States, has stirred controversy with his recent remarks about the Panama Canal, asserting the US should potentially reclaim control over the strategic waterway if the fees charged by Panama are not reduced. Trump's comments, shared via social media and public speeches, reflect growing tensions between the two nations, reigniting discussions about the historical sovereignty of the canal now owned by Panama.
On December 21-22, 2024, Trump voiced his concerns over what he called "exorbitant fees" charged to American vessels traversing the canal. On his Truth Social platform, he stated, "The fees Panama collects are ridiculous, especially knowing the extraordinary generosity the US has granted to Panama." Trump's declaration hinted at the possibility of demanding the return of the Panama Canal if these tariffs do not adjust to what he considers appropriate levels.
President José Raúl Mulino of Panama responded swiftly to Trump’s threats, asserting the sovereignty of his country over the canal unequivocally. "Every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue to belong to Panama. The sovereignty and independence of our country are non-negotiable," said Mulino, emphasizing the historical and emotional significance of the waterway to Panamanians.
The Panama Canal, completed in 1914 after significant American investment and labor, was controlled by the United States until 1999 when control was transferred to Panama under the terms of the Torrijos-Carter Treaties. These agreements established the canal as neutral territory, open to ships of all nations, and aimed to address the previous inequalities perceived by Panamanians under US administration.
Trump’s recent assertions also touched on concerns about China's growing influence on the canal. He insinuated potential Chinese interference, which he contends poses threats to US interests. Mulino rejected these claims, clarifying, "The canal does not have any direct or indirect control from China, the European community, or the United States or any other power." This statement aimed to reinforce Panama’s position as the sovereign controller of this pivotal maritime route.
The interoceanic canal, which facilitates around 3% of global trade, has significant strategic importance not only for Panama but also for global maritime traffic as it links the Atlantic and Pacific Oceans. Historically, its creation drastically changed shipping routes, allowing vessels to save thousands of kilometers and weeks of travel time.
Yet, Trump’s perspective aligns with his broader first-term narrative, where he consistently positioned the US as being unfairly treated internationally. His remarks triggered reactions beyond Panama's borders, prompting allies to reconsider their diplomatic ties amid his assertive rhetoric. Observers are pondering the consequences of such declarations as they reverberate through the channels of international relations.
Mulino’s administration expressed its determination not to compromise on matters of sovereignty, standing firm against Trump's bold posturing. The Panamanian government has successfully defended its control over the canal for over two decades following the treaty's completion, arguing against any notions of American reclaiming its historical control.
Further complicity arises from Trump's comment on the influence of China, with geopolitical analysts stressing the importance of these dynamics at play. While Trump's suggestions may be perceived as bluster, they raise concerns about increasing tensions between the US and both its allies and competitors alike.
There's historical weight behind this issue, rooted deep within the stories of labor, loss, and persistence of the Panamanian people. Throughout the construction of the canal, many lives were lost, and the locals suffered under colonial-like overstretch. Now, its management is seen as part of the Panamanian identity and pride, with any threat to its control viewed as both offensive and unacceptable.
Despite Trump's efforts to spotlight issues with the canal and criticize Panama's management, the operational capacities and fees associated with the canal are determined through its overseeing body, the Panama Canal Authority (ACP), based on market demand and international shipping needs rather than the whims of any single nation.
Other regional leaders, such as Claudia Sheinbaum Pardo, President of Mexico, have also come out to support Mulino, reinforcing statements about Panama's sovereignty and rejecting Trump's assertions. There is increased solidarity within the region to protect the independence of countries facing external pressures from the US administration.
While Trump's tenure begins on January 20, 2025, speculations swirl around the future of US-Panama relations and how these public proclamations will affect existing partnerships across the Americas.
With the balance of global power shifting and the interplays of influence becoming more nuanced, Trump's threats raise significant questions about the future of sovereignty and international diplomacy. For now, both the government of Panama and its citizens remain steadfast, committed to safeguarding their rights and identity.
The discussions and responses are yet another reminder of the historical legacy of the Panama Canal and the nuanced, often contentious relationship between the United States and Panama. The outcome of this political discourse may shape the geopolitics of the Americas for years to come.
