President-elect Donald J. Trump on Tuesday did not rule out using military force to retake the Panama Canal, which the United States returned decades ago.
Last month, President Trump Panama has falsely accused the Chinese of allowing its military to control a vital shipping route linking the Atlantic and Pacific oceans and imposing excessive fees on American ships.
He also claimed that Panama charges “exorbitant prices” for American ships, and that if prices are not reduced after he takes office next month, he will demand that the United States be “granted full, prompt and unquestioned control of the canal.” I warned you. ”
It’s unclear what prompted President Trump’s recent obsession with the Panama Canal, but some Republicans have long opposed the decades-old treaty that handed the shipping lanes over to Panama’s control. When Ronald Reagan ran for president, he roused his audience by saying that the American people were the “rightful owners” of the canal: We paid for it. “We made it.”
Who owns the Panama Canal?
After a failed French attempt to build the canal, it was eventually built by the United States between 1904 and 1914. And the U.S. government has managed the canal for decades.
The United States also participated in the founding of Panama. In the early 20th century, the Isthmus of Panama was part of Colombia. When Colombia rejected the proposed canal treaty, the U.S. government encouraged a revolt. The northern region of Colombia enthusiastically seceded and established the Republic of Panama. The U.S. Navy then prevented Colombian troops from suppressing the rebellion.
U.S. control of the canal has caused significant tensions with Panama. In 1964, anti-American riots broke out in the US-controlled Canal Zone.
The riots led to the Panama Canal Treaty being renegotiated. In 1977, U.S. President Jimmy Carter and Panamanian leader Omar Efraín Torrijos signed the Torrijos-Carter Agreement. that An agreement guaranteeing the permanent neutrality of the Panama Canal. After a period of joint management, the treaty required the United States to relinquish control of the canal by 2000.
Panama gained full control in 1999 and has operated the canal through the Panama Canal Authority since then.
Mr. Carter, who died December 29, always regarded the treaty as a signature achievement, and it figures prominently in his obituary.
James Fallows, President Carter’s speechwriter, said, “By a bizarre coincidence of timing, we now have a president dreaming of bringing back the canal at the very moment when its relocation is recognized as an important part of the former president’s legacy.” “He said. I accompanied the President during his visit to Panama in 1978.
How did Panama respond?
In a statement reprimanding President Trump last month, Panama’s President Jose Raul Mulino wrote, “Every square meter of the Panama Canal and its adjacent areas belongs to Panama.”
Mr. Mulino also said U.S. ships are not overcharged. He insisted the rates levied on ships and naval vessels were “not capricious.”
Panamanian officials said the same fee applies to all countries, although it depends on the size of the vessel. They were established through public meetings of the Panama Canal Authority and took into account market conditions, international competition and operating and maintenance costs, Mr. Mulino said.
However, interest rates have recently risen. This is because Panama has experienced severe drought since 2023 due to a combination of El Niño and climate change. President Trump called it a fraud. With water levels in Gatun Lake, the canal’s main hydrological reserve, at historically low levels, authorities have reduced water levels for ships passing through the canal to conserve fresh water in the lake.
A Trump spokesman said ships would be hit hardest by the rate increase because the United States is the canal’s largest user.
What is China’s role in the Panama Canal?
The Chinese military does not ‘run’ the Panama Canal, as President Trump has claimed.
“For the love of God, there are no Chinese troops in the canal,” Mr. Mulino said in a speech Thursday. “The whole world can freely visit the canal.”
CK Hutchison Holdings, a Hong Kong-based company, manages two ports at the mouth of the canal. And some experts say it raises legitimate competition and security concerns for the United States.
Ryan C. Berg, director of the Americas program at the Center for Strategic and International Studies, a Washington think tank, noted that CK Hutchison likely has data on all ships transiting the Panama Canal. China has used shipping and maritime operations to gather foreign intelligence and conduct espionage.
“China can exercise or exercise certain elements of control even in the absence of military disruption,” Mr. Berg said. “I think there is reason to be concerned.”
Chinese Foreign Ministry spokesman Maoning said Tuesday that China will always respect Panama’s sovereignty over the Panama Canal.
China is the second largest user of the Panama Canal after the United States. In 2017, Panama severed diplomatic ties with Taiwan and recognized the island as part of China, a major victory for China.
Can the United States reassert control?
It’s not easy.
Mr. Mulino made it clear that the Panama Canal is not for sale. He noted that the treaty establishes the permanent neutrality of the canal and “ensures its open and safe operation to all nations.” And the Senate ratified the Panama Canal Treaty in 1978.
Mick Mulvaney, President Trump’s former chief of staff, suggested that the provocation was merely part of a negotiating tactic to lower interest rates.
“I don’t think the U.S. military will go in to retake the canal. But I think there’s someone out there scratching their head and thinking, ‘Is Donald Trump crazy enough to do something like that?'” Mr. Mulvaney said Tuesday on NewsNation’s “The Hill.”
Mr. Berg said it was also unlikely that Panama would grant special rates to the United States because of the neutrality agreement. And he pointed out that Mr. Mulino is “tremendously pro-American” and would likely want to help the incoming Trump administration deal with issues such as illegal immigration.
Prime Minister Berg said, “President Mulino will be a great ally for the United States.” “We should not want this to develop into some kind of political fight because we need President Mulino on many other issues.”
But there is also a military option, as President Trump has threatened. As president, Trump could order an invasion of Panama. According to its constitutional provisions, Panama does not have an army. But experts on Tuesday dismissed Trump’s threats as empty threats.
If the United States wanted to ignore international law and act like Vladimir Putin, it could invade Panama and restore the canal, said Benjamin Gaden, director of the Latin America program at the Wilson Center in Washington. “No one will see this as a legitimate act, which will not only seriously damage their image but also destabilize the canal.”
