Panama City:

 Hundreds of Panamanians marched on Thursday to mark the anniversary of a deadly uprising against U.S. control of the Panama Canal in 1964, with some protesters burning an effigy of President-elect Donald Trump who has threatened to retake the vital global waterway.

More than 20 Panamanians, many of them students, died during violent clashes across the country in January 1964, which escalated after U.S. security forces opened fire in response to mass demonstrations against the U.S. presence in the country and control of the canal. At least three U.S. soldiers also died.

The incident, remembered every January 9 as “Martyrs’ Day,” is regarded as paving the way for the eventual transfer of the canal to Panama in 1999. It also serves as a reminder of a bloody past that still dominates national feeling over the canal in Panama, at a time of rising tension with Trump.

“Today is a day to remember the sacrifice of our martyrs, but also to say to the world that Panama is sovereign and the canal is ours,” said Sebastian Quiroz, an 84-year-old retired unionist who was a student during the uprising.

The marching crowd chanted “spilled blood will never be forgotten” and “hands off Panama” as they approached the monument of the eternal flame, built to remember those that died in 1964. Earlier in the day President Jose Raul Mulino laid a wreath at the site in a formal ceremony.

Trump on Tuesday refused to rule out using military or economic pressure to seize control of the canal, an 82-km (51-mile) artificial waterway connecting the Pacific and Atlantic Oceans that is a core international shipping route.

The president-elect has criticized the cost of moving goods through the canal and derided Chinese influence in the area. China does not control or administer the canal, but a subsidiary of Hong Kong-based CK Hutchison Holdings has long managed two ports located on the canal’s Caribbean and Pacific entrances.

Panama has strongly rebuked Trump’s threats.

“The only hands that control the canal are Panamanian and that’s how it will continue,” Foreign Minister Javier Martinez-Acha told reporters on Tuesday.

Ivan Quintero, a 59-year-old university worker attending the march, said no government could take away what Panamanians had fought so long for.

“Mr. Trump has been very disrespectful in threatening to take the canal away from us,” he said. “He has to learn to show respect.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

People demonstrate against U.S. President-elect Donald Trump at the Monument to the Martyrs of January 9th and the “eternal flame” in Panama City on December 31, 2024.
| Photo Credit: ARNULFO FRANCO

The story so far: On December 22, 2024, Donald Trump threatened to take back the Panama canal, calling the transfer treaty “foolish”. He said, “Our Navy and Commerce have been treated in a very unfair and injudicious way….we will demand that the Panama canal be returned to us, in full, and without question.” Panama’s President José Raúl Mulino rejected Trump’s threat, and said, “I want to express precisely that every square metre of the Panama canal and its adjacent area belong to Panama, and will continue to belong to Panama.”

Why is Trump upset with Panama?

The first and major reason for the U.S. President-elect’s upset is the high transit fees applied on U.S. vessels by the ACP (Panama Canal Authority). In 2023, Lakes Gatun and Alhajuela experienced severe drought affecting the shipping and navigation of the canal as it relies on these reservoirs to operate its locks. Therefore, the ACP reduced the number of slots for crossing ships by 36%. This led to the increase in transit fees. The second cause of worry has been the increased Chinese presence in the Panama canal. In 2017, Panama became the first Latin American country to sign a Belt and Road Initiative (BRI) agreement, and ever since then, Chinese investment has increased significantly. Hutchison Ports PPC, a subsidiary of a Hong Kong-based company, operates two ports near the canal’s entrances, igniting concerns over Chinese influence on logistical operations and surveillance over the U.S. Navy.

What is the U.S.-Panama treaty?

The Panama canal is an artificial 80-kilometre canal connecting the Atlantic and Pacific Oceans, reducing cost, time and distance for international shipping. The canal is crucial for the global supply chain, and 6% of maritime world trade goes through it. The canal also symbolises U.S.’s technological prowess and economic power. It opened in 1914 after the U.S. finished construction, and was controlled by the U.S. until December 31, 1999.

The canal was handed over to Panama in 1999 under the Torrijos-Carter Treaties. The first, called the Panama Canal Treaty, cancelled the Panama Canal Zone and turned the canal over to the Panamanians on December 31, 1999. Under the second, the Permanent Neutrality Treaty, the canal was declared neutral and open to vessels of all nations. Under this treaty, the U.S. has the right to defend the neutrality of the canal and have priority passage in military emergencies.

What has been Panama’s response?

Panama’s President José Raúl Mulino has rejected Mr. Trump’s accusations. He addressed the accusations by defending the transit rates and clarifying the concerns about external influence over canal operations. He stated that the transit rates are set according to international standards and decided by a procedure. He denied any involvement of external powers such as China or the European community while emphasising the importance of sovereignty for Panamanians. He responded to Mr. Trump’s accusation of Chinese soldiers operating the canal, saying, “There is not a single Chinese soldier in the canal, and on the other hand, there will not be”.

What next?

The concerns over fee hikes and operations logistics will likely be discussed diplomatically, despite Mr. Trump’s threats. While the U.S. might attempt to influence Panama and pressure the latter with renegotiations, Panama will look for international support to reaffirm its sovereignty. China has also responded to the accusations. Foreign Ministry spokesperson Mao Ning said that the Panama canal was a great creation for the Panamanian people and a neutral passageway. He added that China respects Panama’s sovereignty.

Vaneeta is a postgraduate student at Pondicherry University.