Special Poll
The Panama Canal, controlled by Panama since 1999 under a treaty brokered by the Carter administration, has recently become the subject of comments by President-elect Donald Trump. It is unclear what prompted Trump’s remarks about potentially retaking the canal. While China has increased its economic presence in Latin America over the past two decades, and a Hong Kong-based company manages ports on either end of the canal, no Chinese entity—commercial or governmental—plays a role in overseeing the canal’s operations.
The canal itself is managed by the Panama Canal Authority, an independent Panamanian government agency. There have been no public indications of China seeking to acquire the canal or expanding its influence in Panama. Recently, Panama elected José Raúl Mulino as its president, who has stated a desire to strengthen ties with the United States.
The canal has a long and complex history with the U.S. In 1903, shortly after Panama gained independence, the U.S. signed a treaty to construct and operate a canal connecting the Atlantic and Pacific oceans. In return, Panama received financial compensation, and the U.S. guaranteed the canal’s neutrality while controlling surrounding areas known as the Panama Canal Zone. For decades, this zone was under U.S. administration, with U.S. law governing its residents.
However, tensions over U.S. control of the canal culminated in 1977 when the Carter administration negotiated two treaties with Panamanian leader Omar Torrijos. These agreements outlined the gradual transfer of canal operations to Panama, culminating in full control by 1999, while the U.S. retained the right to defend the canal’s neutrality. The canal has since been under Panamanian jurisdiction and continues to be a key global shipping route.