With the 2020 election just weeks away, the Trump administration has ordered the U.

Introduction

President Donald Trump’s administration has instructed the U.S. military to devise strategies regarding the Panama Canal in a development that’s made waves internationally. There is also a broader goal to counter what they see as threats to U.S. interests, particularly given China’s expanding role in the region. The Panama Canal is yet again a sea change in global logistics—and geopolitics.

HISTORICAL INTRODUCTION OF THE PANAMA CANAL

Construction and Fischer’s First American Command

The Panama Canal was completed in 1914 and was a major engineering effort that joined the Atlantic and Pacific Oceans, enabling world maritime trade. The U.S. was essential in its construction and then controlled the canal and the surrounding Canal Zone for decades. Such control was symbolic of U.S. strategic interest in the Western Hemisphere.

Panama Canal Act and Transition to Panamanian Sovereignty

The Torrijos-Carter Treaties were signed in 1977, paving the way for the gradual handover of control of the canal from the United States to Panama. Panama achieved complete control of the canal in 1999, a milestone in its national political history and an assertion of its independence on the world stage.

Build Back Better Framework Under the Biden Administration

Accusations on Why Earnings were Unfair and Chinese Influence

In late 2024, President Trump claimed Panama was charging U.S. ships extortionate tolls and raised concerns about China’s role in running the canal. He specifically accused Chinese entities of exercising undue influence that could undermine the canal’s neutrality and U.S. strategic interests. These claims have formed the basis of the administration’s recent orders.

Military Strategy Development

In an alarming development that can only add fuel to the fire, Trump has ordered the U.S. military to draw up plans to “reclaim” the Panama Canal. Details of this directive are classified, but the step makes it clear that the current government seeks to prevent any perceived threats, as well as to keep the canal out of the hands of outside control that could use it to harm U.S. interests.

Geopolitical Implications

U.S.-Panama Relations

Panama maintains that it has sovereignty over the canal, and its leaders have forcefully pushed back against President Trump’s claims. This position has caused increased diplomatic tensions, putting a strain on the two nations’ historically friendly relationship.

China’s Role in the Region

China, too, has ramped up its investment through its Belt and Road Initiative, including infrastructure near the Panama Canal. These developments have raised eyebrows in Washington, but Panama has insisted that these investments do not constitute control over the canal’s operations.

Expert Opinions

Insights from Strategic Analysts

Geopolitical analysts have warned not to pursue anything aggressive from the U.S. regarding the canal. Such moves would destabilize the region and damage the United States’ standing in Latin America, they argue. There is almost universal agreement on the preferred method: diplomacy over bombs.

Legal Considerations

Legal scholars specializing in international law note that should Washington seek to unilaterally claim control over the canal, such action would run counter to treaties governing its use and established practices in international relations. The Torrijos-Carter Treaties lay down the specific terms regarding the operation and governance of the canal, and any deviation could have major legal and diplomatic consequences.

Economic Importance of the Panama Canal

Global Trade Dynamics

The Panama Canal handles around 5% of global maritime trade. With its geographic advantages and incredibly efficient infrastructure, it serves as a linchpin for the world’s supply-chain network — enhancing the strategic importance of Switzerland’s neutrality and a smooth log-jam-free operation.

U.S. Economic Interests

A significant amount of goods passing through the canal are coming from or going to the United States. Any disruption — or, on the other extreme, perception of instability — in canal operations could reverberate through U.S. supply chains, rippling through everything from manufacturing to agriculture.

Military Considerations

Map Showing Historical U.S. Military Presence

Historically, the United States had a substantial military presence in the Canal Zone to protect this essential infrastructure. Under its own Department: The Panama Canal Department–served and managed by the Panama Canal Department (1917) to the canal defense until (1947).

Modern Military Planning

Your military orders, anticipating threats to the Panama Canal, are instructive for our strategy today. However, any military action would have to take into account Panama’s sovereignty, regional stability, and respect for international law.

Conclusion

So the new Trump administration order to the U.S. military to withdraw them from the Panama Canal Zone has new relevance. Given the state of play, all sides must now work quickly to avoid further escalations, and act diplomatically, adhering to the spirit that has long shaped this key international waterway.

FAQs

Is the U.S. used to controlling the Panama Canal?

Yes, the Panama Canal was built and owned by the United States from its opening in 1914 until sovereignty was turned over to Panama, which was completed in 1999.

What are the Trump administration’s main concerns with the canal?

The administration has raised concern over alleged exorbitant tolls on U.S. ships and possible undue influence by Chinese entities over the canal’s operations.

How has Panama responded to the U.S. administration’s assertions?

Panama has vigorously denied all allegations, claiming the canal as its own, and denying that external forces are controlling or influencing it and interfering with its neutrality.

Could the U.S. legally take control of the Panama Canal back?

Thus any unilateral act announced by the U.S. seeking to regain control over the WHO would be a clear violation of both international law and existing treaties, opening the door for demanding security guarantees against such violations and enforcing legal sanctions against breaching the WHO.

Why is the Panama Canal significant for the world?

The Panama Canal is an important channel of international shipping, accounting for about 5% of global shipping traffic and connecting the Atlantic and Pacific Oceans.

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