Top political leaders in Panama recently commemorated the 25th anniversary of the return of the Panama Canal to Panama after years of US control. The celebrations were overshadowed by US President-elect Donald Trump’s remarks urging for US dominance over the crucial waterway. Panamanian President Jose Raul Mulino, a right-leaning leader like Trump, assured the public that the canal would remain under Panama’s control despite Trump’s statements.
Trump has been vocal about his desire for the US to take back governance of the Panama Canal, among other expansionist ideas such as suggesting Canada become the 51st state and expressing interest in purchasing Greenland. Trump recently accused Panamanian officials of charging excessive fees for passage through the canal, violating a 1977 agreement that established the transfer of the canal to Panama. Trump’s threats have raised concerns among observers, but Panamanian officials have denied any wrongdoing and stated that Trump has no legal basis for his claims.
The history of Panama Canal control dates back to the late 1800s, when the US aimed to construct the canal in Panama, which was then part of Colombia. Panama declared independence, and the US supported the secession, becoming the first country to recognize Panama as its own state. In return, Panama granted the US the right to build and oversee the canal, forming the Panama Canal Zone. Critics saw this agreement as a violation of Panama’s sovereignty, leading to the transfer of the canal back to Panama in 1999 after two treaties signed by then-US President Jimmy Carter in 1977.
The Panama Canal allows cargo ships to pass between the Pacific and Atlantic Oceans without having to navigate around South America, reducing travel times and costs for vessels. The canal’s strategic importance has increased over the years, although it has faced challenges such as increased traffic and a severe drought affecting its operations. Amidst commemorations for the canal’s return, Panama also honored the protesters who died advocating for its restoration to Panamanian control, including those who lost their lives in a student protest known as the Martyrs Day.
Despite Trump’s claims, Panamanian officials have denied allegations of Chinese influence over the canal, stating that there is no legal basis for the US to take back control of the waterway. Former canal administrator Jorge Luis Quijano emphasized that the neutrality agreement governing the canal does not allow for its reversion to US control. The recent controversy surrounding the Panama Canal highlights the complex history and ongoing significance of this critical waterway in global trade and geopolitics.
