PANAMA CITY — Former President Teddy Roosevelt once hailed the Panama Canal as an exceptional achievement that Americans would forever take pride in. Over one hundred years later, however, President Donald Trump has voiced intentions to reclaim the canal for the United States.
The president-elect has criticized Panama for raising fees to utilize this crucial maritime route linking the Atlantic and Pacific oceans. He has indicated that if the situation does not improve upon taking office, he would insist “that the Panama Canal be returned to the United States of America, in full, quickly and without question.”
Trump has a history of leveraging threats against allies to gain concessions. Yet, experts from both nations assert that unless he resorts to military action, it is practically unfeasible for Trump to regain control of a canal handed over to Panama in the 1970s.
In understanding this context, it’s crucial to grasp the significance of the canal itself.
The Panama Canal is an artificial waterway that spans 51 miles (82 kilometers) and employs a series of locks and reservoirs to facilitate maritime travel between the Atlantic and Pacific Oceans. This shortcut saves ships from sailing an additional 7,000 miles (over 11,000 kilometers) around Cape Horn at the southern tip of South America. According to the U.S. International Trade Administration, the canal significantly benefits American businesses by reducing time and fuel costs, which is vital for transporting perishable goods and ensuring timely deliveries within supply chains.
The origins of the canal date back to efforts initiated by Ferdinand de Lesseps, who was known for constructing Egypt’s Suez Canal. This venture launched in 1880 but faltered until bankruptcy halted progress after nine years, marked by rampant tropical diseases such as malaria and yellow fever that took the lives of over 20,000 workers amid rigorous working conditions.
At that time, Panama was a Colombian province that declined to approve a treaty allowing U.S. construction of the canal in 1901. In response, Roosevelt dispatched U.S. naval forces to the Atlantic and Pacific coasts of Panama. The U.S. preemptively drafted a constitution for the future nation, granting American troops the authority to intervene in Panama to restore order and public peace.
Panama proclaimed independence with little resistance on November 3, 1903, largely due to the challenges Colombian troops faced in the jungles. Shortly after, Panama agreed to a treaty permitting a U.S.-led construction team to proceed with the canal. Approximately 5,600 workers died during this subsequent phase of construction, according to estimates.
The Panama Canal officially opened in 1914, but questions regarding the legitimacy of U.S. control soon arose among Panamanians, igniting what has been termed the “generational struggle” for its sovereignty. By the 1930s, the U.S. relinquished its intervention rights, and by the 1970s, with rising administrative costs, the Nixon and later Carter administrations negotiated to grant control of the waterway back to Panama.
These negotiations culminated in two treaties: the “Permanent Neutrality Treaty,” which secures the U.S. role in ensuring the canal’s operations remain accessible, and the “Panama Canal Treaty,” which mandated the transfer of the canal’s control to Panama on December 31, 1999. Although both treaties were signed in 1977 and ratified the following year, the arrangements endured through the turmoil of the U.S. invasion of Panama in 1989 to oust leader Manuel Noriega.
Interestingly, while around half of Americans were against transferring control in the late ’70s, public sentiment shifted favorably toward the treaty by the time of the actual handover in 1999.
Since then, the management of the canal has reportedly improved under Panamanian control, with a 17% increase in traffic recorded between fiscal years 1999 and 2004. A referendum approved in 2006 by voters authorized an extensive canal expansion to accommodate larger ships, completed in 2016, which cost upwards of $5.2 billion.
In a recent statement, Panamanian President José Raúl Mulino asserted, “Every square meter of the canal belongs to Panama and will continue to.” He emphasized national unity surrounding their sovereignty over the canal, despite other political divides.
Increased shipping fees came earlier due to droughts hampering the canal’s operations, compelling Panama to restrict traffic and raise usage rates. While conditions have improved, Mulino noted that further fee adjustments might be needed to align with modern shipping demands.
The president-elect has claimed that the U.S. is being “ripped off,” insisting that previous arrangements should ensure fair treatment. Trump has labeled the treaty granting control to Panama as “foolish,” citing provisions for ensuring equitable treatment. “There’s no clause of any kind in the neutrality agreement that allows for the taking back of the canal,” said Jorge Luis Quijano, the former canal administrator.
Speculations abound regarding Trump’s threat, as experts assert that reclaiming control without military action is nearly impossible. “Unless there is another invasion of Panama, there’s very little wiggle room to take back control of the Panama Canal,” stated Benjamin Gedan from the Wilson Center, highlighting the confusing nature of Trump’s comments, especially given the pro-business stance of Panama’s current leadership.
The United States maintains a partnership with Panama on issues like controlling illegal immigration from South America, an area Trump prioritizes. “Choosing to confront Panama over this matter could be a misguided approach given our strategic interests,” Gedan added.
