« We didn’t give it to China. We gave it to Panama, and we’re taking it back ».
On the 21th January, Trump has just created 51 milles of tensions. Located in Panama, this now very famous canal was pointed out in Trump’s speech as he entered in the White House. Reuters qualified Trump’s by its « most blatant mention ». Provocative, interventionist, expansionist, this sentence is for sure many things but is it true ? Can the USA « take back » the canal from Panama ? What does the international law say about it ? And does China really controls it..?
Panama fights back
Panama’s government has not hesitated in responding to Donald Trump by reaffirming it’s sovereignty of the Panama Canal. In a post on X, Jose Raul Mulino actual Panamanian President expressed that his Canal « is and will continue to be Panamanian ». The now recent member of the Security Council of the United Nation, addressed a letter to the council expressing it’s concerns. Adding to that, Trump said he will no take any military dispositions to take control of the Panama Canal showing that he could only rely on international law or negotiations.. As this last option was rejected by Jose Raul Mulino the US is left with one last resort : International law.
However, this modern-day-imperialism language of Trump has its limits. Formally the canal is exploited by the Panama Canal Authority, Panamanian public entity.
There is no ambiguity concerning the Panama’s sovereignty over the canal. As the Panama respects the terms of the treaty and give access to military vessels through the canal. Indeed, the Canal is a neutrality area, and a freeway for international ships. Moreover, since 1945 and the Carter of the United Nations, no military action can justify a territorial expansion.
The deep link between the US and the Panama Canal
Completed in 1914, the Panama Canal was originally the idea of the French diplomat, Ferdinand de Lesseps who just finished the Suez Canal. Emboldened by this success, Lesseps persuaded Colombia, then a part of Panama, to obtain a concession in the isthmus of Panama. After a massive technical and financial failure, as well of high death rate and politic scandals, the project was abandoned.
At that time, the USA had their eyes on Nicaragua and were considering how a canal could benefit them, choosing to purchase the French interests. From 1914 to 1977, USA owned and administrated the Panama Canal but eventually handed it over to Panama. The Carter-Torrijos Treaty superseded the Hay-Bunau-Varilla Treaty of 1903 and gave full control of the Panama Canal to the Panama’s government after a period of transition.
Trump’s opinion that Panama “foolishly” gave it to Panama aligns with the Republican criticism, in contrast to the Democrat Jimmy Carter, at the time of the retrocession.
What is China’s role?
China, named in Trump’s speech, is accused of controlling the Panama Canal. President Mulina has hardly denied that China controls the canal “directly or indirectly”. Nevertheless, China is present around the Panama Canal, owning two of the five main ports, Balboa and Christobal but do not administrate or control the canal itself. In fact, the Panama Ports Company is a subsidiary of Hutchinson Ports itself owned by CK Hutchinson an harbor operator owned by the chinese Li Ka-shing. The company first made its presence in 1997 by answering a concession offer-call and was renewed for 25 years in 2021.
The Balboa port is located in the Atlantic facade while the Cristobal in the Pacific one, although it’s is not directly part of the Panama canal infrastructure system, but the US worries that China could established a military presence there. Marco Rubio, the actual secretary of state of the US, declared fearing that Beijing take a the canal by the two facades.
However, no link was established between the Chinese communist parts and the company. To show its transparency, the Panama Maritime Authority (PMA) launched an audit of the Panama Ports Company. Furthermore, Mao Nin, the spokesperson of the Ministry of the Foreign Affairs declared that “the sovereignty and the independence of Panama were not subject to negotiation” and denied any interference of China over the Panama Canal.
The reason might lie elsewhere. The United States of America has denounced the price of the customs duties for passage through the Panama Canal. As a matter of fact, 40% of the export of United State of America around the world uses the canal which account for 74% of the boats that pass through the Panama Canal, while 21% of them are Chinese boats.
Because of it’s tight history with America, Trump estimate that American boats should pay less than the other nation to navigate in the Panama Canal. However in a interview accorded to the Associated Press, Ricaurte Vàsquez Morales, administrator of the Canal, explained that the taxes can not be arbitrary due to the origin of the ship, but it’s fixed by the charging capacity. Adding to this information, he also expressed that the United States of America, unlike China, benefits from of a accelerated transit for the vessels of the US Navy.
In the same time, Canada and Greenland (Denmark) were also mentioned by President Trump and want to change the name of the Gulf of Mexico by Gulf of America. Trump’s statement may seem offensive to other countries, but some analysts have nuanced the seriousness of the situation. During his fist term from 2017 to 202, Donald Trump was known for issuing some headline-grabbing threats which he failed to deliver on.
