President-elect Donald Trump recently stirred controversy with his threats to demand the return of the Panama Canal if Panama does not reduce the fees it charges for ships passing through this significant waterway. Trump’s comments not only strike at the historic relationship between the U.S. and Panama but also raise concerns over potential shifts in U.S. foreign policy under his administration.
During public statements, Trump criticized what he deemed exorbitant tolls set by Panama, describing them as "ridiculous" and "highly unfair," especially considering the U.S. "generosity" toward Panama over the years. His remarks have been characterized as part of his broader "America First" foreign policy stance. "The fees being charged by Panama are ridiculous, highly unfair, especially knowing the extraordinary generosity... bestowed on Panama. It's going to stop," Trump declared, emphasizing his intention to protect U.S. interests.
The Panama Canal, which opened its doors to maritime traffic way back in 1914, has historically been of strategic importance to the U.S. control over the canal began after the U.S. supported Panama’s independence from Colombia in 1903. The U.S. maintained control of the canal and the adjoining Panama Canal Zone until it was handed back to Panama on December 31, 1999, following the Torrijos-Carter Treaties signed under President Jimmy Carter.
Currently, the canal remains integral to global maritime trade, facilitating about 2.5% of it. The strategic significance of the canal is underscored by fears expressed by Trump and other U.S. officials of Chinese control over its operations, as ports at both ends of the waterway are managed by Hong Kong-based CK Hutchison Holdings. The prospect of reduced access during geopolitical tensions adds another layer of urgency to Trump’s comments.
Trump’s threats were met with immediate backlash from Panamanian officials. President José Raúl Mulino firmly dismissed any notion of ceding control back to the U.S., stating, "Every square meter of the Panama Canal and its adjacent zones is part of Panama, and it will continue to be." This assertion underlines the resolute stance of the Panamanian government against what they deem as U.S. overreach.
Critics of Trump, including Andrés Oppenheimer, editor at The Miami Herald, questioned the practicality and timing of his remarks, especially with pressing issues like undocumented migration flows through Panama's Darién jungle and regional cooperation at stake. Oppenheimer suggested, “Why is Trump threatening Panama?... There isn't much to negotiate with Panama.” His op-ed highlighted the potential diversion from more significant domestic and international concerns, questioning whether Trump's strategy is more about appealing to his political base than addressing real issues.
Political commentator Meghan McCain weighed in, expressing her support for Trump's comments based on her family's history with the canal: "Trump is right about the Panama Canal. This is very personal—my dad was born in the Panama Canal Zone." Her comments reflect how Trump's rhetoric resonates with some segments of the American populace.
Young political analyst Harry Sisson, on the other hand, criticized Trump for his approach, stating, "Trump isn't even president yet, and he's already... threatened war with Panama, and embarrassed us on the world stage AGAIN." He underscored the unpredictability and potential diplomatic repercussions of Trump's rhetoric even before assuming office.
With his incoming administration, Trump seems poised to continue employing aggressive negotiation strategies, reminiscent of his past leadership style. Discussions around the Panama Canal and the potential for future disputes signal not just challenges for U.S.-Panama relations but also place broader alliances at risk.
Overall, Trump's threats to reclaim control over the Panama Canal present significant diplomatic challenges, reflecting his hawkish tendencies and igniting debate about the potential fallout on U.S.-Latin American relations. It remains to be seen whether these threats will evolve beyond rhetoric or translate to actionable foreign policy as Trump transitions from president-elect to president.
