Key Takeaways:
– Trump issued a warning to Panama about their increasing fees connected to the Panama Canal, hinting at a reclamation.
– CNN Political Commentator, David Urban, discussed the complex relationship between Panama, China, and the US relating to control over the Panama Canal.
– China, as a strategic partner to Panama, has been increasing its influence over the Panama Canal, causing concern among US stakeholders.
The Recent Panama Canal Dispute
The past week was marked by controversy stirred up by President-elect Donald Trump. One of his contentious statements was directed towards Panama. Through his Truth Social platform, Trump warned Panama about its “ridiculous fees” connected to the Panama Canal, suggesting the United States might reclaim the canal. Trump added that this warning was issued in light of the “extraordinary generosity” bestowed upon Panama by the US.
This statement has been controversial, with many speculating the motive behind the targeting of Panama. Former Democratic New York Rep. Max Rose suggested a hidden financial incentive. Rose expressed his thoughts on “Erin Burnett OutFront,” suggesting Trump could be acting on an inside promise in return for future funding.
A Counter Perspective on the Panama Canal
Offering a different perspective, CNN political commentator David Urban responded to Rose’s idea. He highlighted the strategic relevance of the Panama Canal in the context of China’s expanding influence. Pointing out the ‘important player’ that’s not Panama, but China in the Panama Canal game, Urban reminded viewers about China’s control over the two major ports at either end of the canal.
He detailed the progression of Panama’s relationship with China since 2017. The rejection of Taiwan by Panama, recognising mainland China instead, was the start. This was followed by Panama joining China’s Belt and Road Initiative in 2018 which allows China to potentially wield more influence on the Canal, a passage where 70% of the traffic is US-related.
US National Security and the Panama Canal
Urban further presented a potential English scenario where the US could reclaim the Panama Canal. He emphasised a point in the treaty that allows the US to assert control over the canal if its neutrality is threatened. Urban drew attention to the US military’s potential role in such a situation, reminding viewers of past interventions – drawing an analogy to Operation Just Cause.
As the discussion moved forward, the CNN guest host, Kate Bolduan, asked Urban if he took Trump’s threats against Panama seriously. Urban responded by expressing concern over how the Panamanians should be cautious about their relationship with China. He cited U.S. national security concerns, especially if China’s Belt and Road Initiative continues to expand and potentially impede U.S. military or trade passages.
The Connection to China’s Increasing Presence
Reports since the 1990s indicate China has been expanding its presence within the Panama Canal. From winning contracts to establish container ports to positioning themselves at either end of the canal, China has been slowly increasing its holding and influence. Topping it off with a $1.42 billion contract in July 2018 to help build a fourth bridge over the canal, China’s presence is significant.
Close on the heels of his statement about the Panama Canal, Trump also suggested that the United States could absorb Canada as the 51st state. This came after Canadian Prime Minister Justin Trudeau mentioned Canada’s inability to handle a 25% tariff on all Canadian goods.
In conclusion, Trump’s spat with Panama opens up another aspect of international diplomacy and geostrategic interests. As we continue to watch the unfolding consequences, what remains clear is that control over globally strategic passages like the Panama Canal are significant chess pieces on the world stage.