President-elect Trump got the attention of Panama and the entire international community when he said this week that the United States would demand that Panamanian officials return control of the Panama Canal to the United States if Panama does not halt the ‘rip-off’ of the United States.
Trump made the case that the United States built it, paid for it and that President Jimmy Carter ‘foolishly gave it away.’
President José Raúl Mulino shot back that the Panama Canal belongs to Panama. Trump noted that ‘it was given to Panama and to the people of Panama, but it has provisions. You got to treat us fairly and they haven’t treated us fairly.’
Make no mistake what Trump is doing is negotiating a new treaty for the Panama Canal and hence, a better deal for the American people. This is much akin to the playbook executed by President Teddy Roosevelt, who maneuvered a complex situation involving the French, the government of Colombia, and the Panamanian people to build the Panama Canal.
The Panama Canal is vital to free commerce and the national security interests of the United States. Approximately 73% of all ships coming through the Panama Canal are heading to or coming from U.S. ports.
It is also vital for international supply chains and global maritime trade itself. It played a huge role in the shipping of goods needed by allied forces during World War II, and thousands of U.S. troops were stationed there to guarantee its security.
