Trump negotiates a new Panama Canal treaty for the American people

President-elect Trump caught the attention of Panama and the broader international community when he said this week that the United States would demand the return of Panamanian officials. control of the Panama Canal in the United States if Panama does not put an end to the “scam” of the United States.

Trump argued that the United States built it, paid for it and that President Jimmy Carter “stupidly I gave it away.”

President José Raúl Mulino retorted that the Panama Canal belonged to Panama. Trump noted that “this was given to Panama and the Panamanian people, but it has provisions in it. You have to treat us fairly and they have not treated us fairly.”

President-elect Trump speaks at AmericaFest, Sunday, Dec. 22, 2024, in Phoenix. (AP Photo/Rick Scuteri)

Make no mistake, what Trump is doing is negotiating a new treaty for the Panama Canal and, therefore, a better deal for the American people. This sounds a lot like the playbook executed by President Teddy Rooseveltwho maneuvered a complex situation involving the French, the Colombian government and the Panamanian people to build the Panama Canal.

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The Panama Canal is vital to free trade and U.S. national security interests. Approximately 73% of all ships transiting the Panama Canal are headed to or from U.S. ports.

It is also vital for international supply chains and global maritime trade itself. It played a major role in transporting goods needed by Allied forces during World War II, and thousands of American troops were stationed there to ensure its security.

Of greatest concern today is the growing influence of Communist China in Central and South America. In 2017, under the administration of former Panamanian President Juan Carlos Varela, Panama transferred its diplomatic recognition of Taiwan to communist China. The then-Trump administration took action and, following a visit from Secretary of State Mike Pompeo in October 2018, the Varela government canceled five infrastructure projects with Chinese companies.

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Craig Fuller, CEO of FreightWaves, recently noted that there are concerns that “China could embed surveillance technology into the canal infrastructure, which could be used to monitor U.S. naval and commercial movements.” It further notes that this espionage potential increases strategic risks and could provide China with key information about U.S. logistics and military operations.

This certainly helps explain why the commander of the United States Southern Command, Gen. Laura Richardson, told the House Armed Services Committee earlier this year that “China is implementing its strategy of being present economically and to equip militarily the neighbors of the hemisphere of the United States”. From a timing perspective, Panama’s new president, who took office earlier this year, is seen as more aligned with Trump’s philosophy and therefore much easier to negotiate with.

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It is important to understand the history of the Panama Canal Treaty. President Carter negotiated the concession in 1977 of full control of the canal to General Omar Torrijos, Panama’s military leader who seized power in a coup. He was also an ally of Manuel Noriega.

The cession of the Panama Canal was extremely unpopular in the United States and was one of the reasons why Ronald Reagan successfully closed the gap in his 1976 GOP presidential challenge against President Gerald Ford. As Reagan prepared to make a successful run for president in 1980, he addressed this issue in a speech at Western Kentucky University.

There he lambasted the Carter administration for moving forward with transferring the canal to “a man (Omar Torrijos) who is there, not because he had the most votes, but because he had the most weapons.” Reagan went on to declare internationally that the world would see the canal’s surrender “not as a magnanimous gesture on our part…” but as “once again America stepping back and withdrawing in the face of difficulty.”

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One thing that many observers overlook is that many legal scholars agree that a President of the United States has the authority to cancel or terminate a treaty. For example, President George W. Bush unilaterally withdrew the United States from the Anti-Ballistic Missile Treaty in 2002.

Likewise, President William Mickinley terminated certain articles of a trade treaty with Switzerland, and President Calvin Coolidge withdrew the United States from a convention aimed at preventing smuggling with Mexico.

And during World War II, President Franklin Roosevelt unilaterally ended a number of treaties. Expect Trump to use this threat to negotiate a treaty, or at least extract concessions, from the Panamanian government.

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Trump inherited the most complex foreign policy landscape any commander in chief has ever faced. Whether it’s growth threat from communist Chinathe idea of ​​a nuclear-armed Iran, the unrest in the Middle East or the Russian-Ukrainian situation, Trump faces constant national security challenges on the world stage.

Yes, it is an international chess game, and so far America’s new commander-in-chief plays it like the late world chess champion Bobby Fischer.

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