The newly opened president of the United States, Donald Trump, is pressing to “recover” the Panama Canal, the second most busy interoceanic river route in the world, stimulating concerns that the United States could invade the Central American nation.
Donald Trump argues that Panama has broken a promise of neutrality made when the United States transferred the channel to Panama in 1999, falsely stating that China is operating.
The channel is operated by the Panama Canal Authority, an autonomous agency supervised by the Panamanian government.
Why is the channel key to the United States?
The Panama Canal, an artificial river route of 82 km (51 miles) that connects the Pacific and Atlantic oceans, saves the thousands of miles and weeks of travel. Before building it, the ships had to make the long trip around the stormy Punta de América del Sur to travel through the two oceans.
More than two thirds of the entire load that passes through the channel today originates or is intended for the United States.
The United States completed the construction of the channel at the beginning of the 20th century, a project initiated by France that cost more than 25,000 lives of workers.
After the pressure of anticolonial movements, the United States signed the treaties in 1977 giving control of Panama and complete sovereignty over the channel area and guaranteeing its permanent neutrality. These entered into force in 1999.
Between 2023 and 2024, a severe drought aggravated by climate change reduced the level of the lakes that fed the channel, forcing its administrator to restrict transits and the draft of the ship, which increased the costs and waiting times.
Passage restrictions were built at the end of last year, but the river route has not yet seen a complete return of normal traffic, since many carriers, especially bulk carriers and trucks of liquefied natural gas, have continued to take alternative routes.
What is China’s participation?
In his inaugural speech last week, Trump repeated accusations that he made after his electoral victory that Panama has ceded control of the channel to China. He has also said that Chinese troops are parked on the channel, without providing evidence.
Both the Panama government and the Chinese government have rejected those statements.
CK Hutchison Holdings, a company based in Hong Kong, has operated for more than two decades the ports of Balboa and Cristóbal in the Pacific and Atlantic entries of the Canal. The company is on the public list and is not financially linked to the Chinese government, although Hong Kong companies are subject to government supervision.
The private firm of the USA SSA Marine operates the port of MIT on the Atlantic coast, the Evergreen group of Taiwan operates another Atlantic port known as CCT, and the PSA International of Singapore operates the port of Rodman on the Pacific coast, According to the company and government’s websites.
China’s economic influence has been growing in Latin America, feeding concerns in Washington that the region rich in resources will be inclined towards Chinese interests instead of those of the United States.
The president of Panamano, José Raul Mulino, has affirmed that the channel is and will continue to be Panamanian.
The Panama authorities recently announced an audit on the operated ports of CK Hutchison, saying that they are investigating the fulfillment of the company with the concession agreements and if it adequately informs their state income and payments.
CK Hutchison’s local arm did not respond to a request for Reuters comments, but said in a statement that has paid the state of hundreds of millions of dollars during its concession and that its workforce is 99.9% Panamano.
Dispute on tolls
Trump has repeatedly complained that rates charged to ships to use the channel are too high, and has accused Panama of raising unfair tariffs for US goods.
“American ships are gaining severely and is not fairly in a way and that includes the United States Navy,” Trump said in the direction.
Among the fiscal years ended in 2020 and 2023, channel toll income increased almost 26% to $ 3.35 billion, according to their annual reports. In the fiscal year that ended last September, the channel compensated less boat traffic with a water surcharge, which combined with slot auctions that increased up to $ 4 million per container.
The channel rates do not differ by the flag of a ship, the country of origin or destination. The United States does not have a relevant commercial fleet under its flag, and US military ships enjoy the priority of the passage.
Mulino said that tariffs are carefully and transparently according to the demand.
According to shipping experts and cargo engines, other key river routes have applied toll rates in recent years in the midst of demand peaks and geopolitical conflicts.
What follows?
Trump’s threat is already affecting Panama’s debt qualification. The United States Investment Bank JPMorgan reduced its recommendation on the country’s bonds on the threats to the channel, a key source of national income.
The United States Secretary of State, Marco Rubio, is scheduled to visit Panama between the end of January and early February, his first foreign visit in office.
Immigration will be a focus of the trip.
Mulino, who assumed the position last year, has taken a tougher line on migration than his predecessor, agreeing deportation flights financed by the United States from Panama and installing spike wire in the Darien Gap, a dangerous route of the jungle that Many migrants carry on the south of South South America on their way to the American border.
(Except for the headline, this story has not been edited by NDTV staff and is published from a union feed).