Stalemate: Trump’s Quest to Retake the Panama Canal under Neutrality Treaty
The Panama Canal, one of the world’s most important waterways, has been at the center of controversy recently due to claims made by former US President Donald Trump. Trump alleges that the canal is under Chinese control, which he believes goes against the Neutrality Agreement signed back in 1977.
The Panama Canal Agreement, along with the Neutrality Agreement, was signed by former US President Jimmy Carter and former Panamanian President Omer Torrijos. These agreements transferred control of the canal to Panama indefinitely after the first agreement ended in 1999. Despite Trump’s claims, there is no provision in the agreement for transferring control of the canal back to the USA.
Under the Neutrality Agreement, only Panama’s military forces are allowed in the canal region once the Canal Agreement expires. Warships from all nations are permitted to pass through the canal without inspection or search, ensuring the canal remains neutral and open to all.
The Panama Canal operates using a locked dock system, which raises and lowers ships as they pass through the canal. This system allows ships to traverse the 77-kilometer-long waterway, shortening the journey between the East and West coasts of the USA by 15,000 kilometers.
In recent years, the canal has covered approximately 5 percent of global maritime trade and generates an annual income of $2.5 billion for the Panamanian government. While Trump has criticized the canal for allegedly overcharging American ships, experts argue that fees are determined based on demand and cover the cost of journeys fairly.
Despite Trump’s claims of Chinese control, the truth behind these allegations remains unclear. However, it is known that China has made significant investments in Panama, further complicating the geopolitical landscape surrounding the canal.
As the Panama Canal continues to play a crucial role in global maritime trade, maintaining its neutrality and efficiency remains paramount. The ongoing debate over control and fees highlights the complex relationships between countries and the economic interests at stake in this vital waterway.
