Panama Canal: There has been an uproar globally after Donald Trump became President. Trump has created a stir by putting heavy tariffs on neighboring countries like Canada and Mexico. China has also been imposed 10 percent tariff. Apart from this, Panama has given a major blow to China amidst the heavy pressure from Trump.
Shock to China
Amidst Trump’s pressure on the Panama Canal, Panama President George Sol Molino said that his country would not renew China’s ambitious Belt and Road Initiative (BRI). Panama joined this Chinese scheme in 2017. But, now after this announcement of the President of Panama, it has become clear that Panama is going to exit this Chinese plan soon.
President Mulino said that Panama will now work with the United States on new investments including infrastructure projects. Our government will audit Panama Ports Company. The company is affiliated to a Chinese company that operates two ports in the Panama Canal. We have to wait till the first audit is completed.
Earlier, US Secretary of State Marco Rubio had told Panama President Mulino that America would have to protect its rights due to China’s occupation of Panama. I do not think that America will have to use military force to again capture Panama.
We will withdraw Panama.
President Trump said that America will take back Panama and we are going to take some big steps for this. Talking to reporters, he said that Panama is running China, although the canal was not handed over to China. The Panama Canal was handed over to Panama without understanding. However, they have violated the agreement and we will withdraw it. For which we are going to take some big steps.
Earlier, Trump had said about the Panama Canal that our Navy and trade have been treated very unfairly. The fees charged by Panama are ridiculous. Such things should be stopped immediately. If the Panama is not operated in a safe, efficient and reliable manner, then we will demand that the Panama Canal be returned to us completely. If both moral and legal principles are followed, we will demand that the Panama Canal be returned to the United States as soon as possible.
What is the role of China in the Panama Canal?
There is no evidence of the clear role of the Chinese government in the management of the Panama Canal, but Chinese companies have a significant presence in Panama. From October 2023 to September 2024, 21.4 percent of the ships passing through Panama were from China. After the United States, China is the second largest user of the Panama Canal. In recent years, China has also invested heavy in ports and terminals near the canal. The two ports associated with the canal have been operating since 1997 by a subsidiary of Chinese company Hutchison Port Holdings. These ports are Balboa, which is located on the Pacific coast, and Kristobal, which is located on the Atlantic coast.
What is the importance of Panama?
Panama Canal is very important in global geopolitics. The 82 km long canal connects the Atlantic Ocean and the Pacific Ocean. It is said that 6 percent of the world’s maritime trade is done through this canal. This canal is very important for America. America’s 14 percent of the trade passes through the Panama Canal. A large number of imports and exports from the United States as well as South American countries are through the Panama Canal. If the goods are to be sent from Asia to a Caribbean country, the ship passes through the Panama Canal. The possession of the Panama Canal can disrupt the supply chain worldwide.
Let us tell you that the construction of the Panama Canal started in the year 1881. However, in 1904, the US took over the responsibility of building this canal and in 1914 the construction of this canal was completed by the US. Subsequently, the US maintained control over the Panama Canal. However, in 1999, the US handed over the control of the Panama Canal to the Panama government. It is now managed by the Panama Canal Authority.
