President-elect Donald Trump has sparked controversy by suggesting the United States should reclaim control of the Panama Canal, a century-old engineering marvel that was handed over to Panama in 1999. Trump’s remarks come in response to rising fees imposed by Panama for passage through the canal, which links the Atlantic and Pacific Oceans.
Trump criticized the fee hikes as “ridiculous” and warned that unless changes are made after he assumes office, the U.S. will demand the canal’s return “quickly and without question.” However, experts on both sides argue that any attempt to regain control of the canal would be legally and practically unfeasible without military action.
The History of the Canal
The Panama Canal, a 51-mile man-made waterway, was constructed under U.S. leadership after initial efforts by a French team failed. Opened in 1914, the canal revolutionized global shipping by drastically reducing travel time between the two oceans. However, the U.S. relinquished control of the canal in a treaty signed during Jimmy Carter’s presidency in the 1970s, officially transferring it to Panama on December 31, 1999.
The treaty includes a “Permanent Neutrality” clause, ensuring the canal remains open and secure, but does not grant the U.S. rights to reclaim it. The transfer decision, initially divisive in the U.S., gained public support over the decades.
Canal Operations Under Panama
Since taking control, Panama has modernized the canal, increasing efficiency and accommodating larger cargo ships through a $5.2 billion expansion completed in 2016. Canal traffic has grown, but recent droughts have forced Panama to limit traffic and raise shipping fees.
Panama’s President José Raúl Mulino defended the fee hikes, emphasizing that they are based on operational needs and not arbitrary. Mulino asserted that “every square meter of the canal belongs to Panama” and vowed to protect the country’s sovereignty over the waterway.
Trump’s Position
Trump has criticized the 1977 treaty as a “foolish” decision, arguing that Panama has not treated the U.S. fairly. While the neutrality clause allows U.S. intervention in case of military conflict, it does not permit reasserting control.
Benjamin Gedan, director of the Latin America Program at the Woodrow Wilson International Center for Scholars, called Trump’s threat impractical and counterproductive, especially given Panama’s strategic importance as a U.S. ally in combating illegal immigration and its growing ties with China.
“There’s no clause or legal pathway for the U.S. to reclaim the canal,” Gedan explained. “Picking a fight over the canal could harm U.S.-Panama relations at a time when cooperation is crucial.”
As Trump prepares to take office, it remains unclear how his administration might approach the issue or whether his threats will translate into concrete action.
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