LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

January 17, 2025

Can the United States Take Over the Panama Canal?

Panamanian President José Raúl Mulino recently rejected a suggestion by U.S. President-elect Donald Trump that the United States should reclaim control of the Panama Canal. // File Photo: Panamanian Government.

Q

U.S. President-elect Donald Trump suggested last month that the United States should reclaim control of the Panama Canal, which the United States relinquished to Panama in 1999. Panamanian President José Raúl Mulino said on Dec. 31 that Panama will retain sovereignty over the canal in perpetuity, rejecting allegations that Chinese firms are using the canal to undermine U.S. strategic interests. Are there any viable avenues for the United States to reclaim the canal? How credible is the claim that Chinese companies working in various capacities around the canal pose a national security threat to the United States? How is the situation likely to affect U.S.-Panamanian relations under Mulino, who assumed office in July, and Trump, who assumes office on Jan. 20?

A

Ryan C. Berg, director of the Americas Program at the Center for Strategic & International Studies: “Chinese influence in Panama has been a concern since the country switched diplomatic recognition from Taiwan to China in June 2017 and became the first country in Latin America to join the Belt and Road Initiative five months later. Naturally, these concerns center on the canal—the most critical piece of infrastructure in the Western Hemisphere. Hutchison Ports PPC, previously a Hong Kong-based shipping consortium, is now subject to China’s National Security Law following Beijing’s takeover of Hong Kong. This means that Hutchison is obliged to turn its data over to the Chinese Communist Party upon request. Furthermore, China’s doctrine of civil-military fusion means that the PRC can convert investments into…”

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