Former President Donald Trump’s repeated claims about “taking back” the Panama Canal face significant legal, practical, and diplomatic hurdles. The canal, transferred to Panama in 1999 under the Torrijos-Carter Treaties, is operated by the Panama Canal Authority (ACP), a Panamanian entity. Here’s why reclaiming it is unlikely:
Legal Constraints:
The 1977 treaties, ratified by the U.S. Senate, cede full control to Panama. Renegotiating would require Panama’s consent, which it has firmly rejected.
The U.S. retains no legal authority over the canal’s operations, though it can defend its neutrality under the treaty.
Operational Reality:
The ACP sets tolls based on vessel size and type, with no special discounts for U.S. commercial ships. Military vessels retain priority passage, a treaty provision Trump could leverage but not expand unilaterally.
Chinese investments in Panamanian ports (e.g., Hong Kong-based CK Hutchison’s former stakes) do not equate to control of the canal itself. A recent U.S.-backed BlackRock deal for port assets is unrelated to canal operations.
Diplomatic and Political Barriers:
Panama’s President José Raúl Mulino has publicly dismissed Trump’s claims, stating, “The Panama Canal is not in the process of being reclaimed.”
Forcible seizure would violate international law, trigger global condemnation, and strain U.S. relations with Latin America.
Economic Implications:
Over 66% of canal traffic involves U.S. trade. Disrupting operations would harm American businesses reliant on this route.
Tolls fund Panama’s economy, making renegotiation politically toxic domestically for Panama.