Panama’s venerated leader, while honoring those who valiantly advocated for the country’s sovereignty six decades back, made a strong assertion at a recent ceremony. With the Panama Canal’s administration in the backdrop, the president reaffirmed Panama’s autonomy over the Canal. This was a direct response to President Donald J. Trump’s comments about the Canal, but the president’s words may have been misunderstood as rhetoric rather than policy.
Rewinding to the disturbing events of 1964, it was the bravery of citizens like Carlos E. Bonilla Cacó’s brother who spearheaded the demand for sovereignty. Their determination led to the Canal’s return to Panama, setting a significant milestone in the nation’s history. This emotional journey reinforces Panama’s resolve to maintain sovereignty over the Canal.
Some pundits suggest President Trump’s mention of the Panama Canal might be a strategic move to negotiate lower rates for American goods traversing the vital passage. This could be a necessary tactic given the economic climate and the importance of cost-saving measures for international trade. However, certain U.S. officials express concern that such an approach might strain relations with Panama during a time when China is trying to further establish ties within Latin America.
Constructed in the early 20th century by the United States, the Panama Canal has been under Panama’s complete jurisdiction since 1999. The Panama Canal Authority operates it today, leveraging its strategic importance on multiple fronts. China, in particular, sees enormous significance in the Canal and is stepping up its Latin American engagement.
China’s global expansions are visibly clear as it attempts to position itself as a power player in global commerce. Port construction globally is a key focus area for China, a strategy that gives it an edge in shaping international trades and activities. The two seaports at each end of the Panama Canal, operated by Hong Kong-based CK Hutchison Holdings, are a subject of interest, and perceived as possible platform for Beijing’s outreach.
Despite CK Hutchison Holdings’s status as a publicly listed conglomerate under a Hong Kong billionaire family’s ownership, fears persist about Beijing’s potential influence. This concern stems from the idea that Beijing’s national security laws could oblige the company to contribute to intelligence or military objectives. However, Panamanian officials dismiss these concerns, asserting absolute transparency in their operations.
Panama maintains that there’s no secret about Canal operations due to its position spanning the country and its visibility to the public. The Panama Canal’s deputy administrator put it plainly, pointing out that anyone can use satellite technology to observe what’s happening at the port. Therefore, any alleged interference by China would be easily detectable.
Comparing his previous and ongoing administrations, President Trump’s interest in the Panama Canal is apparent, deeming it as an ‘unfinished business’. During a meeting in June 2017 with then Panamanian president Juan Carlos Varela, he voiced concerns about the hefty toll for U.S. Navy passage through the Canal. However, amplifying China’s role never surfaced as a discussion point.
In the backdrop of these conversations, China was planning to invest heavily in Panama’s infrastructure. The Panamanians saw this investment as beneficial to their country’s development, while critics said it could be a manipulative move by Beijing. Nevertheless, the Panama Canal’s purpose transitioned from a military route, as originally intended by the United States, to a booming heart of global commerce under Panama’s control.
After the Panama Canal was transferred to Panama, the country invested over 5 billion dollars to broaden the waterway to support larger cargo ships. The most frequent route today is from the United States to East Asia. The Panama Canal’s deputy administrator highlighted the investments saying, ‘If it wasn’t for our investment, the canal would be irrelevant on the scale of global trade.’
Panama’s neutrality is seen by its administrators as a key business asset for the Canal. It allows them to facilitate global commerce without preference, effectively making the route attractive to all. This plays into Panama’s vision of the canal being used for worldwide trade.
Staying true to this vision, companies from Hong Kong, Taiwan, and the U.S. operate the three ports at the canal’s Atlantic entrance. Questioning why attention was drawn to this now, the deputy administrator said, ‘These ports have been managed by Hong Kong since 1997, throughout Trump’s first administration. Trump never said a thing about it then, so why now?’
There’s a sense of reluctance among some Panamanians about China’s growing investment. Previous government dealings and economic agreements with China roused discomfort among several officials. These sentiments resulted in putting trade agreement negotiations and infrastructure projects like the Canal bridge construction on hold.
The former Minister of Commerce emphasized the United States’ primary allegiance, even while dealing with these complex political and economic dynamics. This stance resonates with the sentiments of many Panamanians who view the U.S. as a crucial ally, despite changes in the political landscape.
In a recent spectacle at the Miraflores Visitors Center, tourists marveled at the sight of a massive cruise ship navigating through the canal. In the tourists’ eyes, President Trump’s alleged threats against Panama seemed less of an assertion of control and more of a remarkable ambiguity.
Overall, while global economic powers continue their maneuverings, Panama stands resolute in its control over the Canal. As they progress, maintaining autonomous decision-making remains paramount to Panama, even amidst the spectrum of international relations nuances and policy dynamics.