The Panama Canal remains a vital trade route, facilitating approximately 5% of global maritime trade and serving as a pivotal link between the Atlantic and Pacific Oceans. Approximately 40% of the United States' container ships navigate this 51-mile waterway, underscoring its importance to American commerce. In 1999, Panama assumed full control of the canal under a treaty that guaranteed its neutrality and accessibility to vessels from all nations. Despite this, recent remarks by former President Donald Trump have reignited discussions on the canal's geopolitical significance and operational control.
Constructed by the United States in the early 20th century, the canal was transferred to Panama following a treaty signed in 1977 by President Jimmy Carter. This agreement was the culmination of decades of negotiations and struggles, ultimately leading to Panama's control in 1999. The treaty ensured that the canal would remain a neutral zone, free from the influence of any single nation. Currently, Hong Kong-based Hutchison Whampoa operates two strategic ports on the canal: Balboa on the Pacific side and Cristobal on the Atlantic end.
President Jose Raul Mulino firmly stated there is "no presence of any nation in the world that interferes with our administration" of the canal. This assertion counters claims by Donald Trump, who suggested that China is currently operating the canal and that Panama has "broken" its promise to remain neutral.
"And above all China is operating the Panama Canal and we didn't give it to China, we gave it to Panama, and we're taking it back" – Donald Trump
The involvement of Hutchison Whampoa has raised concerns among some U.S. officials. Senator Marco Rubio expressed apprehension about potential Chinese influence over the canal due to their control over both ends of this vital waterway.
"the very legitimate concern is these companies control both ends of this canal and at a time of conflict and the Chinese tell them 'shut it down and don't let the US go through there' we got a big, big problem. A big economic problem and a big national security and defence problem" – Marco Rubio
Despite these concerns, Panama maintains its stance on sovereign administration without external interference. Michael McFaul also criticized Trump's approach, emphasizing that peaceful leadership contradicts aggressive territorial reclamation.
"You can't be a president of peace and take back the Panama Canal" – Michael McFaul