The Panama Canal: A History of Controversy and Control

The Panama Canal, a vital artery of global trade, has long been a focal point of geopolitical tension. Recent comments by President-elect Donald Trump have reignited discussions about its control, with Trump suggesting the United States should reclaim authority over the canal. This proposal has been met with firm rejection by Panama, which has exercised sovereignty over the waterway for over two decades. Here is what we know about the canal’s history and the latest controversy.

Origins of the Panama Canal

Before the canal’s construction, ships traveling between the Atlantic and Pacific Oceans faced a perilous journey around South America’s Cape Horn. The canal’s creation transformed global shipping by cutting thousands of miles and months off voyages.

In 1903, the Republic of Panama gained independence from Colombia with U.S. support. A treaty between the two nations granted the U.S. control over a 16-kilometer strip of land to build the canal. Construction, completed in 1914, was a monumental engineering feat but came at a heavy cost. Approximately 5,600 workers died during the U.S.-led construction due to diseases and harsh conditions.

From Strategic Asset to National Sovereignty

The Panama Canal quickly proved its strategic importance, particularly during World War II. It enabled faster movement of Allied forces and resources between the Atlantic and Pacific theaters. However, tensions between the U.S. and Panama escalated over time.

Disputes over canal control and the treatment of Panamanian workers fueled nationalist movements in Panama. A pivotal moment came in 1964 when anti-American riots erupted, leading to deaths and a temporary severance of diplomatic relations. These events prompted negotiations that culminated in the 1977 Torrijos-Carter Treaties. The agreements mandated shared control of the canal until its full transfer to Panama in 1999.

Modern Challenges and Trump’s Claims

Since Panama assumed full control, the canal has faced operational challenges. Increased shipping volume necessitated a massive expansion project completed in 2016. However, droughts in recent years have reduced water levels, limiting the canal’s capacity. To manage these issues, Panama imposed higher transit fees and traffic restrictions.

Trump’s criticism of these fees as “ridiculous” reflects his broader grievance about perceived inequities in U.S.-Panama relations. He has also raised concerns about China’s growing influence in Panama. In 2017, Panama severed diplomatic ties with Taiwan and strengthened relations with Beijing, which some interpret as a sign of increased Chinese sway in the region. However, Panamanian officials, including President José Raúl Mulino, assert that the canal operates independently of any foreign power.

A History of U.S. Claims

Trump’s rhetoric about retaking the Panama Canal is not entirely unprecedented. During his campaign in 1976, Ronald Reagan described Americans as the “rightful owners” of the Canal Zone. In the late 1980s, tensions flared again under Panamanian leader Manuel Noriega, whose regime was ousted following a U.S. invasion linked to the “war on drugs.”

Despite these historic disputes, the Torrijos-Carter Treaties remain the legal framework governing canal sovereignty. Panamanian leaders have consistently emphasized that the agreements guarantee their nation’s control over this critical asset.

Global Implications

Trump’s statements reflect a pattern of provocative claims about acquiring foreign territories. His remarks have sparked debates about U.S. foreign policy priorities and the potential ramifications of reopening canal-related disputes. Panamanian officials, however, have dismissed the notion of ceding control as a violation of their sovereignty.

While Trump’s comments have drawn international attention, it remains unclear how seriously he intends to pursue this issue. For Panama, the canal symbolizes not just a vital economic resource but also a hard-won assertion of national identity.

The Panama Canal’s history is one of ambition, conflict, and eventual reconciliation. Trump’s calls to retake control have revived old tensions, though the likelihood of such an action remains uncertain. As Panama navigates its challenges, the canal stands as a testament to the enduring complexities of international relations and the interplay between global powers and smaller nations.