President Donald Trump has sparked global attention once again with his recent comments on the Panama Canal, expressing a renewed interest in the U.S. regaining control over the critical waterway. In a speech at his Mar-a-Lago estate, Trump described the canal as “an absolute gem” and emphasized its strategic and economic significance to the United States. He criticized the fact that the U.S. does not currently control the canal and suggested that reclaiming it would offer substantial benefits for American security and trade.

Panama Canal

Strategic Significance

The Panama Canal, which connects the Atlantic and Pacific Oceans, is one of the most important maritime routes in the world. The waterway serves as a vital shortcut for ships traveling between the eastern and western hemispheres, reducing the time and cost of global shipping. The canal is also of immense military importance, providing a key route for U.S. naval forces and other global powers moving between the two oceans.

Trump pointed to the canal’s strategic role, suggesting that U.S. control over it would strengthen American military positioning and influence over global trade. “The Panama Canal is an incredible piece of infrastructure,” Trump stated. “The United States needs to have control over something this critical to its security and economy.”

The U.S. held control over the canal for much of the 20th century, but following the Panama Canal Treaty of 1977, the waterway was handed over to Panama in 1999. Since then, the Panama Canal Authority, a Panamanian government agency, has overseen the canal’s operations. Trump’s recent remarks, however, have raised questions about whether he envisions the U.S. reclaiming full control of the strategic passage.

Economic Considerations

In addition to its military value, Trump highlighted the economic importance of the Panama Canal. The waterway handles a significant portion of global trade, including goods such as oil, consumer products, and raw materials. Trump suggested that regaining control of the canal could benefit the U.S. by providing American businesses with preferential access, ultimately reducing shipping costs and increasing the efficiency of U.S. trade.

Panama Canal, Sea Route

“If we controlled the canal, we could make sure our businesses are always first in line, and that gives us a huge advantage,” Trump remarked. The former president also emphasized that U.S. control would allow the country to exert greater influence over global trade routes, offering economic leverage over nations that rely on the canal for their imports and exports.

Historical Context

This is not the first time the issue of U.S. control over the Panama Canal has been discussed. The canal was a U.S. project, with the American government overseeing its construction in the early 20th century. President Theodore Roosevelt played a key role in securing the canal’s construction, which was completed in 1914. For nearly a century, the U.S. maintained sovereignty over the canal, viewing it as essential to both military strategy and global commerce.

However, the 1977 Panama Canal Treaty signed by President Jimmy Carter and Panamanian leader Omar Torrijos set a path toward the canal’s transfer to Panama, which was completed in 1999. Since that time, Panama has exercised full control over the canal, and it remains a central point in the country’s economic and national identity.

Global Reactions

Trump’s comments have drawn sharp reactions, particularly from Panama. Panamanian President Laurentino Cortizo swiftly rejected any notion of U.S. control over the canal, reiterating Panama’s sovereignty over the waterway. "The Panama Canal is a symbol of our independence and economic sovereignty," Cortizo said. "Any attempt to alter the current arrangement would be met with strong opposition from the Panamanian government and people."

Experts on Latin American relations have also warned that Trump’s rhetoric could harm U.S.-Panama relations and strain broader diplomatic ties within the region. "The Panama Canal is deeply woven into Panama’s national identity," said Dr. Maria Gonzalez, a professor of Latin American studies at Georgetown University. "Any suggestion of reclaiming control would likely create significant diplomatic tensions and potentially jeopardize U.S. relations with Panama and other countries in the region."