President-elect Donald Trump has sparked controversy by demanding the return of the Panama Canal to the United States, citing historical and strategic reasons for the move.
According to Fox News, Trump’s call for action has reignited debates about the canal’s transfer, national security, and the increasing role of China in Panama.
Trump criticized the 1977 treaty that handed over control of the canal to Panama, describing it as a mistake by former President Jimmy Carter. The canal, completed by the United States in 1914, remains a vital conduit for global trade, with 73% of its traffic linked to American ports.
Panama’s President José Raúl Mulino has rejected Trump’s request, reaffirming that the canal is Panama's property. His statement underlines the sovereignty established by the treaty, which was widely celebrated in Panama despite criticism in the United States.
Mulino’s firm response reflects Panama's stance on maintaining control of the canal, which is seen as a symbol of national pride. Meanwhile, Trump has framed his demand as a bid to ensure fairness, claiming the U.S. has been treated unjustly in the arrangement.
The historical handover of the canal has long been a contentious issue in U.S. politics. It played a significant role in Ronald Reagan’s rise, as he sharply criticized the decision, arguing it weakened U.S. influence and security.
China’s growing influence in Panama has added another layer of complexity to the debate. After Panama switched its diplomatic recognition from Taiwan to China in 2017, concerns emerged about Chinese investments in the Canal zone.
Craig Fuller, CEO of FreightWaves, highlighted the strategic risks posed by potential Chinese surveillance through canal infrastructure. These concerns have drawn attention to the broader implications of China’s economic and military presence in the region.
In 2018, then-Secretary of State Mike Pompeo urged Panama to cancel five Chinese infrastructure projects, underscoring U.S. apprehensions about Beijing’s role. General Laura Richardson of U.S. Southern Command also testified to Congress about China’s growing influence in the hemisphere.
The Panama Canal has historically been critical to U.S. commerce and defense. During World War II, the canal was essential for Allied logistics, with thousands of U.S. troops stationed to secure it.
The 1977 treaty marked the end of U.S. control but preserved provisions for neutrality and fair treatment. Trump’s push for renegotiation hinges on these provisions, which he claims Panama has not honored. Legal precedent exists for U.S. presidents to unilaterally terminate treaties. Trump could leverage this option to pressure Panama into concessions, though such a move would undoubtedly face diplomatic challenges.
President-elect Trump said: The United States built it, paid for it, and [President Carter] foolishly gave it away. It was given to Panama and to the people of Panama, but it has provisions. You got to treat us fairly and they haven’t treated us fairly.
The canal’s transfer remains a divisive issue, reflecting broader tensions between national interests and international agreements. Trump’s demand raises questions about the future of U.S.-Panama relations and the geopolitical balance in the Americas. As debates continue, the strategic importance of the canal underscores its role as more than just a trade route. It is a focal point of economic, political, and military interests that shape regional dynamics.
The outcome of Trump’s proposal will likely depend on negotiations between the two nations, as well as broader geopolitical factors. Regardless of the result, the Panama Canal remains a crucial player in global affairs.
