Former US President Donald Trump has made headlines after declaring his intention to “take back” control of the Panama Canal, after accusing the country of charging “ridiculous” fees to American shipping companies. Trump’s comments at a campaign rally in Des Moines, Iowa, have sparked discussions about relations between the US and Panama as well as international trade.
Trump on accused the Panama Canal Authority (ACP) of imposing what he described as unaffordable tolls on American businesses. “We created the Panama Canal, and now they’re putting us in a position where we’re getting raped with these absurd charges. It’s time to reclaim what’s ours,” he told a fired-up audience. His comments are part of a renewed “America First” message he has been promoting during his 2024 presidential campaign.
The Panama Canal, built in 1914 under U.S. control, remained under U.S. management until it was returned to Panamanian authorities in 1999 in accordance with the 1977 Torrijos-Carter Treaties. It has since been a symbol of Panamanian sovereignty and an important trade route from the Atlantic to the Pacific Oceans.
The ACP management of the canal has delivered billions to Panama’s economy. Trump’s remarks, however, have reopened debates on whether toll structures are fair for major users like the US.
Panama’s government quickly denounced what Trump had said as “irresponsible.” Panama’s president, Laurentino Cortizo, reiterated the autonomy of the canal, saying that “The Panama Canal is a cornerstone of our national sovereignty and a vital artery of global commerce. We won’t allow threats against its independence.”
The world as a whole is also seeing it. China, a leading canal user and one of Panama’s largest trade partners, issued a warning through its foreign ministry, saying it opposed any activities that disrupted the stability of global trade. “The Panama Canal is crucial to international commerce. Any interference would have dire repercussions,” a spokeswoman said.
Trump’s inflammatory statement has divided the US. His backers say the fees hurt American businesses in particular, but critics contend that the comments were impractical, counterproductive and diplomatically damaging. John Kerry, the former secretary of state, called Trump’s proposal “reckless” and warned of possible diplomatic blowback.
Experts have also weighed in on how practical Trump’s threat is. “Recovering the Panama Canal is not legal or political at all. Such a move would have strained US relations around the world and damaged its reputation,” said Dr. Amelia Hart, an international relations professor at Georgetown University.
The Panama Canal, which handles more than 14,000 vessels a year, is still a vital link in global trade. Such a disruption could have dire consequences for global supply chains and US exports.
Industry leaders have called for a diplomatic response. “Instead of inflammatory rhetoric, the goal should be constructive negotiations to resolve any issues related to tolls,” said Richard Neal, CEO of a major U.S. shipping association.
This newest statement fits a pattern of Trump questioning international agreements. As president, he pulled the US out of landmark agreements such as the Paris Climate Agreement and the Trans-Pacific Partnership. His rhetoric about the Panama Canal reflects a more general effort to renegotiate or contest long-standing global arrangements.
As Trump’s remarks echo across the planet, the future of US-Panama relations appears to be in doubt. Although the ex-president’s fiery language excites his supporters, the consensus is that attempting to “recapture” the canal is inconceivable at this time due to the high legal, political, and economic barriers.
