Eu Antitrust Regulators Set Deadline For Liberty Media’s Bid For Dorna SportsDonald Trump has repeatedly voiced his desire to “take back” the Panama Canal, a statement that has sparked significant discussion. However, his claims have not been accompanied by specific details about how he would achieve this. Here’s an explanation of the Panama Canal’s strategic importance, the legal frameworks surrounding its control, and the feasibility of Trump’s proposed actions.
Why is the Panama Canal So Important?
Strategically located at the narrowest point of the isthmus between North and South America, the Panama Canal is one of the most critical waterways in the world. In 2024, the canal facilitated over 11,000 crossings, handling more than 235 million tons of cargo. This vital route connects the Atlantic and Pacific Oceans, saving ships from making the lengthy journey around South America.
The U.S. relies heavily on the canal, with over two-thirds of its cargo originating from or destined for the U.S. If the canal were blocked, ships would need to navigate around the southern tip of South America, which would significantly increase shipping times and costs.
Trump’s Statements on the Panama Canal
Former President Trump has criticized the tolls Panama charges U.S. vessels passing through the canal, calling them “ridiculous” and “unfair.” The tolls are based on the type and size of the vessel, with additional charges for vessels arriving without reservations. While U.S. military ships have priority passage, commercial vessels are not entitled to preferential rates.
Trump has also raised concerns over China’s increasing influence in Panama, alleging that Chinese companies might use their investments to control the canal or undermine U.S. interests. Although Chinese companies have made significant investments in Panama, including a major port deal, there is no substantial evidence suggesting Beijing controls the canal or can manipulate its operations.
In response, Trump has claimed that his administration is already working on “reclaiming” the canal. This includes a deal where U.S. investment firm BlackRock acquired a controlling stake in two major ports on either side of the canal from a Hong Kong-based conglomerate, a move Trump sees as a first step toward reclaiming the waterway.
Panamanian President José Raúl Mulino has publicly stated that “the Panama Canal is not in the process of being reclaimed,” clarifying Panama’s stance on the matter.
The Legal Framework Surrounding the Canal
The Panama Canal is owned and operated by the Panama Canal Authority, an autonomous agency governed by the Panamanian government. Under the Treaty Concerning the Permanent Neutrality of the Panama Canal, Panama has pledged to charge “just, reasonable, and equitable” transit fees, although the treaty provides no specific details on the enforcement of these terms.
While the U.S. and Panama could theoretically resolve disputes through their domestic courts, the U.S. judiciary’s authority over international treaties is unclear. Alternatively, the two nations could bring disputes to the United Nations International Court of Justice, but enforcement of such rulings would be a challenge.
Given Trump’s frequent criticism of the UN, it seems unlikely that he would seek its intervention.
Could a Country Take the Canal by Force?
Any attempt by a foreign power to seize control of the Panama Canal by force would violate international law. The U.S. and Panama are bound by treaties to defend the canal’s neutrality. Both nations have the right to take unilateral action to protect the waterway.
Additionally, the U.S. and Panama’s treaty explicitly prevents the U.S. from interfering in Panama’s internal affairs or undermining its territorial integrity. While the U.S. Southern Command holds regular military exercises with Panama and other regional allies to safeguard the canal, these exercises do not include scenarios involving the U.S. invading Panama.
Conclusion
While Trump’s statements about reclaiming the Panama Canal have generated significant attention, there are numerous legal and diplomatic hurdles that make such an action highly unlikely. The canal is a vital global asset, and the laws surrounding its operation and protection are clear. Any attempt to take control by force or in violation of international agreements would breach longstanding treaties and international law.
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