As President-elect Donald Trump continues to shake up global politics, his recent remarks on the Panama Canal have sparked concern, particularly in Panama, where his claims are viewed with alarm. In a series of comments, Trump declared that his administration would demand the immediate return of the Panama Canal to U.S. control, despite the waterway being under Panamanian sovereignty since 1999. He even suggested the use of military or economic measures to achieve this goal, a stance that has drawn sharp criticism from both Panama and experts worldwide.
The canal, completed by the U.S. in 1914, was handed over to Panama as part of a 1977 agreement signed by President Jimmy Carter. The waterway, which facilitates 6% of global maritime trade, remains crucial to international commerce, especially between the United States and the Pacific. Since Panama took control, the canal has undergone significant expansion to accommodate the world’s largest vessels, bringing the country annual profits of £2.8 billion. Notably, 70% of the goods that pass through the canal are destined for or originate from the United States.
Trump’s remarks have raised two key points of contention. First, he claims that U.S. businesses are being “ripped off” by high fees to use the canal. However, Panama has refuted this, noting that the fees are consistent across the board and that the U.S. receives discounted rates as part of the original handover agreement. Second, Trump has suggested that China has taken control of the canal, a claim that has been widely debunked by experts. John Feeley, former U.S. ambassador to Panama, dismissed the accusation, emphasizing the strong intelligence and security relationship between the U.S. and Panama, adding, “You don’t control a canal from a port.”
Nevertheless, there is growing concern about China’s expanding influence in the region. Several ports along the Panama Canal are operated by a subsidiary of Hong Kong-based CK Hutchison Holdings, giving China strategic access to one of the world’s most vital maritime routes. This has raised alarms among some U.S. officials, with General Laura Richardson warning that Chinese investments in Latin America, such as a new $1.3 billion deepwater port in Peru, could be part of Beijing’s broader global objectives.
The geopolitical shift in Panama is further underscored by the country’s decision in 2017 to sever ties with Taiwan in favor of establishing diplomatic relations with mainland China. This move has prompted concerns among U.S. policymakers, with Marco Rubio, Trump’s nominee for secretary of state, describing China’s increasing global influence as “the defining challenge of the 21st century.”
Despite these developments, the Panamanian government has strongly rejected Trump’s statements. President José Raul Mulino affirmed that the canal “belongs to Panama, every square meter of it,” while emphasizing the country’s sovereignty. The U.S. government has yet to offer a concrete response, but the ongoing tensions highlight the complex relationship between the two nations as they navigate both economic cooperation and rising geopolitical challenges.
The canal, once a symbol of U.S. control and influence in the region, is now at the center of a broader struggle for power, with China’s growing presence complicating matters further. While some Panamanians in the city of Colón, a once-thriving hub under U.S. rule, long for the days of American dominance and military presence, many are resolute in defending their sovereignty. “I’m ready to fight for him,” said Ricardo Brown Bravo, 68, echoing the sentiment of those in the region who feel nostalgic for the pre-1999 era.
As The Times reports, Trump’s remarks have certainly disrupted the status quo in Panama, leaving many wondering if the canal’s future might be once again shaped by external forces. Whether the U.S. will pursue a more aggressive stance or find a diplomatic solution remains to be seen, but one thing is clear: the Panama Canal continues to be a symbol of strategic importance and a flashpoint for broader geopolitical struggles.
