Why Does Trump Want the Panama Canal? Here’s What to Know

President-elect Donald J. Trump on Tuesday did not rule out using military force to retake the Panama Canal, which was returned to the country’s control by the United States decades ago.

Last month, Mr. Trump falsely accused Panama of allowing Chinese military control of a vital shipping lane between the Atlantic and Pacific Oceans and overcharging U.S. ships.

He also claimed that Panama was charging “exorbitant prices” for U.S. ships and said that if prices were not reduced after he took office next month, he would “completely, promptly and unquestionably take action” against the United States. “They will demand that they be given control of the canal instead of giving them control over the canal.” ”

It’s unclear what prompted Trump’s recent obsession with the Panama Canal, but some Republicans have long opposed the decades-old treaty that handed over the shipping lane to Panamanian control. When Ronald Reagan ran for president, he said the American people were the “rightful owners” of the canal, and his line brought the audience to its feet: We paid for it. we made it. ”

Attempts by France to build a canal failed, but it was eventually constructed by the United States between 1904 and 1914. The U.S. government then controlled the canal for several decades.

The United States also played a role in the creation of the Panamanian state. In the early 20th century, the Isthmus of Panama was part of Colombia. When Colombia rejected the proposed canal agreement, the U.S. government encouraged a revolt. The northern states of Colombia eagerly seceded and formed the Republic of Panama. The U.S. Navy then stopped the Colombian military from suppressing the rebellion.

U.S. control of the canal caused significant tensions with Panama. In 1964, anti-American riots broke out in the U.S.-controlled Canal Zone.

The riots led to the renegotiation of the Panama Canal Treaty. In 1977, U.S. President Jimmy Carter and Panamanian leader Omar Efrain Torrijos signed the Torrijos-Carter Treaty. This agreement guaranteed the permanent neutrality of the Panama Canal. After a period of co-management, the treaty called for the United States to relinquish control of the canal by the year 2000.

Panama assumed full control in 1999 and has operated the canal through the Panama Canal Authority ever since.

Mr. Carter, who died on December 29, always considered the treaty to be a signature achievement, and it was featured prominently in his obituary.

“By a strange coincidence of timing, Mr. Carter’s speechwriter James Fallows said, “By a strange coincidence of timing, the idea of ​​taking back the canal comes just as the world is realizing that the canal transfer is an important part of the late president’s legacy. We have a president who will.” He accompanied the then-President on his 1978 trip to Panama.

How did Panama react?

“Every square meter of the Panama Canal and its adjacent areas belongs to Panama,” Panama’s President Jose Raúl Mulino wrote in a statement reprimanding Trump last month.

Mulino also said that U.S. vessels were not overcharged. He insisted that fees levied on ships and warships “are not capricious.”

Panamanian officials said all countries would be charged the same fee, which varies depending on the size of the ship. Mulino said these were set in a public meeting by the Panama Canal Authority and took into account market conditions, international competition, and operating and maintenance costs.

However, prices have increased recently. That’s because Panama has been hit by a severe drought since 2023 due to a combination of El Niño and climate change, which Trump claims is a hoax. With water levels in Gatun Lake, the canal’s main hydrological reserve, at historically low levels, authorities have reduced shipping through the canal to protect the lake’s fresh water.

President Trump’s spokesman said the toll increase would hit American ships the hardest because the United States is the canal’s largest user.

The Chinese military does not “operate” the Panama Canal, as Trump claims.

“For the love of God, there are no Chinese soldiers in the canal,” Mulino said. in Thursday’s speech. “People from all over the world are free to visit the canal.”

Hong Kong-based company CK Hutchison Holdings manages two ports at the canal’s entrance. And some experts say it raises legitimate competitive and security concerns for the United States.

Ryan C. Berg, director of the Americas program at the Center for Strategic and International Studies think tank in Washington, said C.K. Hutchison likely has data on every ship that passes through the Panama Canal. China uses shipping and shipping business to Collect foreign information and carry out espionage activities.

“China is exercising, or could exercise, certain elements of control even in the absence of a military conflagration,” Berg said. “I think there’s reason to be worried.”

Mao Ning, a spokesperson for the Chinese Ministry of Foreign Affairs, said: said on tuesday China said it would “continue to 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 relations with Taiwan and recognized Taiwan as part of China. This was a major victory for the Chinese government.

Can the US reassert dominance?

It’s not easy.

Mulino made it clear that the Panama Canal is not for sale. He said these treaties established the canal’s permanent neutrality and “guaranteed its open and safe operation to all nations.” The Senate ratified the Panama Canal Treaty in 1978.

Trump’s former chief of staff, Mick Mulvaney, suggested the provocations were just part of a negotiating tactic to lower interest rates.

“I don’t imagine the U.S. military retaking the canal, but you have to think someone is wondering, ‘Is Donald Trump crazy enough to do something like that?'” Mulvaney said. . He spoke on NewsNation’s “The Hill” on Tuesday.

Berg said the neutrality agreement would make it impossible for Panama to even give special interest rates to the United States. He noted that Mulino is “incredibly pro-American” and likely keen to help the incoming Trump administration address issues such as illegal immigration.

“President Mulino will be a great ally of the United States,” Berg said. “We don’t want this to turn into some kind of political battle because we need President Mulino on many other issues.”

But there is also a military option, as Trump has threatened. As president, Trump may order an invasion of Panama. According to the constitution, Panama has no military. 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 take back the canal,” said Benjamin Gayden, director of the Latin America program at the Wilson Center in Washington. he said. “No one would consider it a legitimate act and it would not only cause serious damage to the image but also create instability on the canal.”