On January 30th, US President Trump has once again pressured Panamanian authorities, warning them that they cannot escape his intentions to reclaim the Panama Canal, a move he has repeatedly mentioned, not excluding the possibility of using military force.
Taking to his social media platform Truth Social, Trump asserted, “Panama is frantically trying to take down the 64% of Chinese signs. The signs are spread throughout the canal area because China controls the Panama Canal. Panama cannot escape!”
During his inauguration ceremony on January 20th, Trump emphasized the significance of the situation, stating, “Most importantly, China is operating the Panama Canal. We didn’t give it to China; we gave it to Panama. We want it back.”
The Panama Canal, opened in 1914 after a construction cost of $375 million, was regarded as the most expensive project in America at the time. In 1964, riots sparked Panama’s efforts to claim control of the waterway, leading the United States to agree to hand over the canal.
In 1977, US President Jimmy Carter transferred the canal to Panama, with both sides reaching an understanding that the waterway would remain neutral in perpetuity as per the Panama Canal Neutrality Treaty signed by Carter and the then Panamanian leader Omar Torrijos.
Situated in Central America, the busy canal is crucial to the economic, military, and national security interests of the United States.
The Panama Canal serves as a vital artery for global economic and strategic transport, with over 1,000 ships transiting monthly and cargo throughput exceeding 40 million tons, accounting for about 5% of global maritime trade. The US is the largest user of the canal, handling 74% of its cargo, followed by China at 21%.
The Panama Canal is also a key passageway for the US Navy to move vessels and submarines between the Atlantic and Pacific Oceans, playing a vital role in its strategic deployments to provide crucial support in potential conflicts, especially in the East Asia region.
Panama has now become a member of China’s Belt and Road Initiative and, under Chinese influence, severed diplomatic ties with Taiwan. Nearly 40 Chinese companies have established operations in Panama, spanning mining, finance, logistics, and telecommunications, among various sectors.
At a hearing of the US Senate Commerce Committee on the Panama Canal on January 28th, Professor Eugene Kontorovich, an expert in Israeli law from George Mason University, stated that if the US determines that Chinese influence on the Panama Canal is excessive or tolls are unreasonably high, compromising the canal’s neutrality, the US would have the “right of self-defense” to intervene preemptively.