The Panama Canal, a vital artery of global maritime trade, stretches approximately 50 miles across the Isthmus of Panama, connecting the Atlantic and Pacific Oceans. This engineering marvel, which measures around 300 feet in width, remains a cornerstone for international shipping, with over 5% of global maritime traffic coursing through its waters. Operated by the Panama Canal Authority, an autonomous agency of the Government of Panama, the canal has become a central pillar of the nation's economy, contributing 23.6% to Panama’s annual income through tolls and related services.
Constructed by the United States from 1904 to 1914, the Panama Canal symbolized a monumental engineering feat. The final explosion to flood the canal was triggered by President Woodrow Wilson in 1913, marking the culmination of a decade-long endeavor that involved excavating over 160 million cubic meters of earth and creating Gatun Lake, then the largest man-made lake in the world. Initially managed by the United States, the canal was transferred to Panamanian control in 1999, albeit with the US retaining military intervention rights to ensure its operational continuity.
Over the years, the canal has undergone significant expansions, most notably in 2016 with the addition of new locks to accommodate larger Neopanamax ships. This expansion has substantially increased the canal's capacity and revenue, with Panama accruing nearly $5 billion in profits from the canal in 2024 alone. The canal serves as a crucial transportation route for ships carrying oil, containers, and bulk cargo, and remains a significant employment source for thousands of Panamanians.
Despite its success and strategic importance, the canal has not been without controversy. Disputes have arisen over US involvement in its operations and accusations that Panama allegedly overcharges the US Navy for transits. Recent remarks by former US President Donald Trump have reignited debates surrounding the canal's ownership and geopolitical significance.
“We have been treated very badly from this foolish gift that should have never been made and Panama’s promise to us been broken,” – Donald Trump
Trump's comments reflect longstanding tensions over the canal's transfer to Panama. He further claimed:
“Above all China is operating the Panama Canal,” – Donald Trump
“And we didn’t give it to China, we gave it to Panama and we are taking it back!” – Donald Trump
These statements have stirred concern among Panamanian officials and citizens alike. Ovidio Diaz-Espino, a noted Panamanian commentator, has expressed apprehension about potential US military involvement.
“It was colonialism. The country was divided in two and you couldn’t even go inside,” – Ovidio Diaz-Espino
Diaz-Espino highlights historical grievances during US control when vast tracts of land were inaccessible to Panamanians.
“They had everything. They had golf courses, they had recreation centers and at the other side of the fence was Panama.” – Ovidio Diaz-Espino
Reflecting on Trump's rhetoric, Diaz-Espino warns of possible repercussions:
“All he [Trump] needs is to land ten thousand troops and that’s it,” – Ovidio Diaz-Espino
He draws an analogy between the canal and other critical natural resources:
“The Panama Canal is our oil, and this is as if you’re threatening to take oil from Saudi Arabia, to take away the oil wells,” – Ovidio Diaz-Espino
Diaz-Espino underscores the canal's economic indispensability:
“This would be devastating to the country. We’d be left with the debt and without the income.” – Ovidio Diaz-Espino
The canal remains foundational not only to Panama's economy but also to global trade. The lock system engineered by the US Army Corps of Engineers enables seamless passage between oceans, underscoring its technical brilliance. The canal continues to draw ships daily, reinforcing its role as a vital conduit for international commerce.
