Trump‘s Panama Canal Threat: A New Chapter in a Long History
President-elect Donald Trump’s recent pronouncements regarding the Panama Canal have ignited a firestorm of international debate. His demand that Panama either lower fees for US ships or return control of the canal to the United States has raised eyebrows and reignited discussions about US foreign policy and the strategic importance of this vital waterway.
Panamanian President José Raúl Mulino swiftly rejected Trump’s ultimatum. In a video posted to X, Mulino declared, “Every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama.” This forceful rebuttal underscores Panama’s determination to maintain sovereignty over a crucial piece of its national infrastructure.
Trump’s claims, made on his Truth Social platform, painted a picture of unfair treatment of US interests. He stated, “Our navy and commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous.”
Beyond the financial disputes, Trump also voiced concerns about China’s growing influence in the region. He emphasized, “It was solely for Panama to manage, not China, or anyone else. We would and will never let it fall into the wrong hands.” This statement highlights the broader geopolitical context of the dispute, reflecting anxieties about China’s expanding global presence and its potential impact on US economic interests.
The Panama Canal, completed by the US in 1914, was officially transferred to Panama in 1999, following a 1977 agreement under President Jimmy Carter. Trump’s threat to reclaim the canal, therefore, represents a notable departure from established diplomatic norms and raises questions about the future of US-Panamanian relations.
Trump’s ultimatum was stark: if Panama cannot ensure “the secure, efficient and reliable operation” of the canal, ”then we will demand that the Panama Canal be returned to us, in full, and without question.” Mulino, while expressing a desire for a “good and respectful relationship” with the incoming administration, firmly rejected these assertions. He countered, ”The canal has no direct or indirect control from china, nor the European Union, nor the United States or any other power. As a Panamanian,I reject any manifestation that misrepresents this reality.”
Trump’s final response, posted on Truth Social, was a simple yet ominous, “We’ll see about that,” leaving the future of this critical geopolitical issue hanging in the balance.
Trump’s Panama Canal Ultimatum: A Geopolitical Powder Keg?
Senior Editor, World-today-News.com: Welcome, Dr. Alvarez, thanks for joining us today to discuss a truly explosive development in international relations.
Dr. Maria Alvarez, Latin American Studies Expert, University of Miami: It’s a pleasure to be here. This situation with the Panama Canal is certainly raising eyebrows.
senior Editor: President-elect Trump’s call for Panama to either lower canal fees for US vessels or return control of the canal to the United States has sent shockwaves through the international community. What are your initial thoughts on this dramatic gambit?
Dr. Alvarez: This is unprecedented. For decades, the US has honored the 1977 agreement that transferred control of the canal to Panama in 1999. While there have been occasional points of friction, this is the most blatant challenge to Panama’s sovereignty since the handover.
Senior Editor: Trump’s statements on Truth Social cited “fair treatment” and accused Panama of charging “ridiculous” fees, suggesting unfair treatment of US interests. What’s the reality behind these claims?
Dr. Alvarez: It’s important to remember that the Panama Canal is a vital artery for global trade, not just for the United States. Panama has invested heavily in modernization and maintenance, and the tolls reflect that investment.While the US may feel they are being ”overcharged,” these fees are standard practice for international waterways and vital to Panama’s economic stability.
Senior Editor: President Mulino’s response has been quite firm. he rejected Trump’s demands outright, asserting Panama’s full sovereignty over the canal. This seems to have initiated a diplomatic standoff. Where do you see this headed?
Dr. Alvarez: This is a dangerous game Trump is playing. Threatening to seize control of the canal is a direct assault on Panama’s sovereignty and a violation of international law. It’s likely to ignite tensions not just between the US and Panama but also within the broader Latin American region.
Senior Editor: Trump also alluded to concerns about China’s growing influence in the region. He stated the canal “must not fall into the wrong hands.” Do you see any evidence to support this claim?
<Dr. alvarez: This is part of a broader narrative we’re seeing from the Trump management, framing china as a looming threat. While China’s economic involvement in the region is growing, there’s no credible evidence to suggest they are seeking to control the Panama Canal.
Senior Editor: Trump’s final statement, “we’ll see about that” leaves the situation shrouded in mystery. What could be the potential repercussions if this conflict escalates?
Dr. Alvarez: The consequences could be severe. A unilateral attempt to seize control of the canal by the US would be deeply destabilizing, possibly leading to severe economic sanctions against the US, damaging relations with Panama and other Latin American countries, and even prompting military intervention.
Senior Editor: Dr. Alvarez, thank you for sharing your expertise and providing such valuable insight into this highly complex and potentially perilous situation.