Donald Trump is once again making headlines after threatening to take control of the Panama Canal, accusing the Central American nation of imposing unfair fees on its use. The president-elect voiced these claims at the Turning Point USA conference held in Arizona on Sunday, stating, "The fees being charged by Panama are ridiculous, highly unfair. Especially knowing the extraordinary generosity... I say very foolishly, by the United States." His declarations come amid serious allegations of tax evasion against his Panama-based business operations, creating what some are calling quite the ironic situation.
During his address, Trump warned, "If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand the Panama Canal be returned to the United States of America, in full, quickly and without question." This aggressive rhetoric has sparked considerable backlash, particularly from Panamanian leaders, who are staunchly defending their nation's sovereignty over the canal.
Panama's President José Raúl Mulino responded swiftly to Trump's threats, asserting unequivocally, "Every square meter of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so. Our country's sovereignty and independence are not negotiable." Mulino's statement reinforces the fact the canal, managed by the Panama Canal Authority since the U.S. handed over control on December 31, 1999, remains under full Panamanian jurisdiction.
The history of the Panama Canal is rich and complex, dating back to Spanish colonization attempts to carve through the isthmus. Despite early efforts, primarily by French engineers, the project did not gain successful momentum until the U.S. backed Panama's independence from Colombia. This move led to the U.S. administering the canal, with the agreement cementing its control for nearly a century. Mulino’s assertion about Panama's ownership is not just political posturing but is deeply rooted in this historical backdrop.
Trump's threats to reclaim control of the canal may have surprising multi-layered ramifications, especially considering his company is embroiled in legal troubles concerning tax evasion. Back in 2019, the owners of the Trump-branded hotel located in Panama City alleged non-payment of required taxes to the Panamanian government by Trump Panama Hotel Management LLC and Trump International Hotels Management LLC. The lawsuit suggests these entities actively evaded taxes, leaving the new owners accountable for millions—an obvious red flag for anyone reviewing Trump's business practices.
According to reports, these tax issues arose from significant inconsistencies found during audits of the hotels operated by Trump's brands, leading to serious allegations of financial wrongdoings. While Trump criticizes Panama's financial policies, he simultaneously faces scrutiny over his own companies' operations there.
Further complicity to Trump's stance is the increasing concern about foreign influence, particularly from China, which he cited as part of his rationale for wanting to re-establish U.S. control over the canal. He noted, "It was gifted to Panama and the people of Panama, but it has provisions." Critics are quick to point out, though, the canal is managed directly by the Panamanian government, which ensures its operation and neutrality, according to Mulino's comments. The president emphasized, "The canal is not under any direct or indirect control from China, the European community, the United States, or any other power."
International reactions to Trump's threats have been swift, with numerous Latin American leaders rallying to Panama's defense. This situation could likely reignite tensions originating from historical grievances over U.S. interventionism and the loss of sovereignty felt by Latin American nations after long periods of foreign control.
Notably, Trump's statements and conditions about the canal disregard the significance it holds within the global shipping industry. The Panama Canal serves as one of the world’s key trade routes, allowing ships to transit between the Atlantic and Pacific Oceans and saving considerable time and distance otherwise required. For many involved, the canal encapsulates far more than just its physical structure; it embodies both economic imperatives and national self-determination.
While Trump’s threats may play well with certain segments of his base, they ring alarm bells concerning U.S. foreign policy and the nation’s historical relationships with its Latin American neighbors. Such statements could create unnecessary diplomatic rifts as Panama firmly holds onto its rights over its territory, vowing to remain sovereign and independent.
Moving forward, it appears the emphasis should be placed on dialogue between the U.S. and Panama, founded on mutual respect and acknowledgment of history rather than confrontational rhetoric. Whether Trump's unfortunate comments signal broader policy changes or serve merely as political bluster remains to be seen, but for now, they have certainly placed Panama and its canal once again at the center of geopolitical discussions. Panama's leaders have made it clear: the canal is theirs, and they plan to keep it.
