Conflict With The Canal

In 1999, the U.S. officially handed full control over the canal to Panama. This decision was influenced by the growing political pressure in Panama for sovereignty over the canal, the changing global political landscape after the Cold War, and the U.S.'s desire to improve relations with Latin America. The U.S. also recognized the costs and challenges of maintaining control over the canal, while Panama demonstrated its ability to manage it. However, recently the conversation of its ownership has reappeared in the news. The U.S. proposed that Panama should let American warships pass through the canal for free; however, Panama’s President, José Raúl Mulino, denied the request, asserting that he does not hold the power to waive transit fees. Mulino has assured that Panama’s independence and sovereignty over the canal are not up for debate. There has also been conflict regarding China and its increasing presence around the waterway, presenting itself as a threat or competition to the U.S. During a recent visit to Panama, U.S. Senator Marco Rubio warned that if Panama does not reduce Chinese influence in the region, it could face consequences from the U.S. For example, U.S. could leverage its economic influence by threatening to limit trade relations, reduce aid, or push for trade restrictions that could harm Panama's economy. At the same time, President Donald Trump argued that China’s role is a security concern and called for the U.S. to take back control of the canal. The U.S. fears Chinese influence because the canal is vital for military access, and China’s involvement could limit U.S. naval operations. The U.S. also has traditionally considered the Western Hemisphere as its sphere of influence, and China’s growing presence can challenge that. However, Mulino has stayed firm on his position of sovereignty and has strongly rejected any possibility of negotiations over the canal’s ownership. Because the Panama Canal plays a crucial role as a primary trade route for global shipping, it will remain a trending topic of discussion. Until further indication, the canal’s control remains a sensitive and strategic issue and continues to draw attention from major world powers.

Sources: AP News, BBC News

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https://apnews.com/article/panama-canal-trump-rubio-hegseth-b623a51ac94ef2a738195e8b894e2a8b

https://www.bbc.com/news/articles/cj9149j4nmzo

https://www.csis.org/analysis/key-decision-point-coming-panama-canal

https://www.bbc.com/news/articles/c39149p920no