President-elect Trump has stirred up international attention by stating that the United States would demand that Panamanian officials return control of the Panama Canal to the United States if Panama does not address what he referred to as the 'rip-off' of the United States. Trump argued that the United States built and paid for the canal, and criticized President Jimmy Carter for 'foolishly giving it away.'
President José Raúl Mulino of Panama responded by asserting that the Panama Canal belongs to Panama. Trump emphasized the need for fair treatment, stating that while the canal was given to Panama and its people, there are provisions that must be upheld.
Trump's actions are seen as negotiating a new treaty for the Panama Canal, aiming for a better deal for the American people. This approach is likened to President Teddy Roosevelt's strategy in building the canal through complex negotiations.
The Panama Canal holds significant importance for free commerce and U.S. national security interests, with approximately 73% of ships passing through the canal heading to or coming from U.S. ports. It also plays a crucial role in international supply chains and global maritime trade, having supported allied forces during World War II.
Concerns have been raised about Communist China's increasing influence in Central and South America, particularly following Panama's diplomatic shift from Taiwan to China in 2017. There are fears that China could exploit the canal's infrastructure for surveillance, posing strategic risks to U.S. logistics and military operations.
The current U.S. administration is closely monitoring China's activities in the region, with efforts to counter potential espionage threats. The alignment of the new Panamanian president with Trump's philosophy is seen as an opportunity for more favorable negotiations regarding the canal.
Historically, the transfer of control of the Panama Canal to Panama in 1977 under President Carter's administration was met with criticism in the U.S. Reagan, in his subsequent presidential campaigns, highlighted the unpopular nature of the decision and its implications for American foreign policy.
Legal scholars suggest that a U.S. president has the authority to rescind or terminate treaties, as seen in past administrations. Trump may leverage this power to renegotiate terms with Panama regarding the canal.
Amidst a complex foreign policy landscape, Trump faces various national security challenges globally, including the rise of Communist China, nuclear threats from Iran, Middle East conflicts, and tensions in Eastern Europe. His strategic approach to international affairs is being closely observed as he navigates these intricate geopolitical dynamics.