Emboldened by his victory in the U.S. presidential polls, Donald Trump has drummed up his rhetoric of belligerence by announcing plans to annex Canada and Greenland and retake control of the Panama Canal. While the U.S. has not historically shied away from coveting the two northern territories, threatening to renege on a deal that ceded Washington’s control of the canal to Panama has been strictly the brainchild of the President-elect.
Panama Canal is an 82-km-long strategic waterway that connects the Pacific and Atlantic Oceans. It helps ships do away with the need to go around the South American tip of Cape Horn, saving 13,000 km and days of journey. Consequently, the canal facilitates the passage of over 14,000 ships a year.
The 78-year-old Republican first spelt out his plans for the canal during a speech at a Conservative event in Arizona and subsequently on his social media platform Truth Social. “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else,” he said, referring to the increased shipping rates, while speaking at AmericaFest on Sunday (December 22). “It was given to Panama and the people of Panama, but it has provisions. If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, quickly and without question.” Mr. Trump also warned of said while of warning about the growing “Chinese influence” in the region. Later, Mr. Trump posted a photo on Truth Social of the U.S. flag flying over the narrow waterway in the Isthmus of Panama. The caption read “Welcome to the United States Canal”.
In its response, the Central American nation said, “Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama).” The country’s President Jose Raul Mulino decried Chinese presence and stated that shipping rates were not set on a whim. Mr. Trump’s remarks also angered the Panamanians who took to the U.S. embassy calling out “Trump, animal, leave the canal alone” and burning his image.
Mr. Trump’s grief in the matter is understandable for the U.S., whose ships constitute 74% of the traffic in the canal, is its biggest benefactor, followed by China at 21%. If not for the canal, ships traversing the east and west coasts of the U.S. would have to undertake an additional 22 days of voyage. In historical context, The canal also came to the aid of the Allies during the Second World War.
What began as a French project in 1880 under the leadership of Ferdinand de Lesseps, who had built the Suez Canal, soon fell apart due to unforeseen difficulties. Americans stepped in to complete the canal but Colombia, which ruled over Panama, did not favour the idea. By orchestrating independence from Colombia, then U.S. President Theodore Roosevelt secured a deal whereby Panama gave his country control over a 16-km wide strip of land to build the canal in exchange for monetary compensation.
Lock technology
The canal entered into operation in 1914. By using a technology comprising a series of locks, it revolutionised shipping. However, a dispute over the ownership and administration soon broke out between the U.S. and Panama, which eventually led to a direct clash in 1964 costing the lives of 28 people. In 1977, then President Jimmy Carter (despite opposition from the Senate) and Panama’s military leader Omar Torrijos signed two treaties — the Permanent Neutrality Treaty and the Panama Canal treaty that saw the U.S. hand over the control of the canal to Panama in 1999.
The former agreement grants the U.S. the authority to ensure the canal remains free and open without giving it the power to interfere in Panama. The latter ensured that Washington transferred the canal to Panama by December 31, 1999.
Since 2000, Panama has overseen the administration of the canal. However, the region, one of the wettest until recently, experienced a rainfall deficit in 2022. Gatun Lake, which provides the 200 million litres of water needed for each ship to transit the canal, experienced a drop in water levels, prompting authorities to increase shipping charges starting in 2025. Mr. Trump has objected to this.
His allegation of Chinese influence pertains to the Hong Kong-based company C.K. Hutchison Holdings, which manages two of the five ports in the region — one on each side of the canal. Bolstering his claim further was Panama’s 2017 decision to cut ties with Taiwan.
Growing tensions between the U.S. and Panama might not align with Mr. Trump’s top policy priorities such as stopping illegal migration from South America, warn experts.
Published – December 29, 2024 01:42 am IST
