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Analysis

Panama Canal: Let it be that Trump is only bluffing

By Basil Enwegbara

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United States president, Donald Trump, threatens to annex Panama Canal

The Panama Canal is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. It cuts across the Isthmus of Panama and is a crucial conduit for maritime trade.

The canal is approximately 82 kilometers (51 miles) long and features a series of locks that lift ships up to Gatun Lake, an artificial freshwater lake 26 meters (85 feet) above sea level, and then lower them back down at the other end.

The canal was initially constructed by the United States between 1904 and 1914, following an earlier failed attempt by France.

Basil Odilim Enwegbara

The author, Basil Odilim Enwegbara

It was one of the most challenging engineering projects ever undertaken, involving significant excavation and the construction of massive locks. The canal officially opened on August 15, 1914.

Control of the Panama Canal was transferred from the United States to Panama on December 31, 1999, following the Torrijos-Carter Treaties signed in 1977.

Today, the Panama Canal is managed and operated by the Panama Canal Authority, a Panamanian government agency.

The canal significantly reduces the time for ships to travel between the Atlantic and Pacific Oceans, avoiding the lengthy and hazardous route around the southern tip of South America via the Drake Passage or the Strait of Magellan, saving ships a 7,000-mile journey around Cape Horn.

Controlled by the U.S. until 1999, it was handed over to Panama under the Torrijos-Carter Treaties.

Panama Canal and Donald Trump

Recently, President-elect Donald Trump criticized Panama’s increased canal fees, threatening to demand its return. Such a move, if attempted by force, would violate Panama’s sovereignty and ignite global instability.

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An invasion of Panama would embolden powers like Russia and China to pursue their own territorial ambitions. Russia could feel justified in reconstituting the former Soviet Union, while European nations like France might attempt to reclaim control over parts of West Africa.

China, too, could see no boundaries to enforcing dominance over its neighbors, including taking over Taiwan. Even North Korea might think the unthinkable, taking South Korea.

These scenarios, once unthinkable, would no longer be off the table, setting a dangerous precedent.

Beyond these extremes, U.S. actions would rally Latin America around China, disrupt global trade, and provoke retaliatory measures from allies and rivals alike.

Economic chaos could ensue, with trade blockades, a run on the dollar, and diminished trust in American leadership.

Meanwhile, U.S. moral authority would collapse, increasing the risk of dismantling the UN and leaving space for rivals to rewrite the rules of global governance, such as BRICS fully emerging as a replacement.

Instead of threats or aggression on the Panama Canal, the U.S. must prioritize diplomacy.

In an interconnected world, reckless actions could isolate America, erode its influence, and spark a cascade of geopolitical crises far beyond Panama.

Basil Odilim Enwegbara is a public affairs commentator.


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