America Must Reclaim Its Role
The Panama Canal’s neutrality and accessibility are essential for maintaining global stability and free trade. Over 60 percent of goods transiting the Canal either originate in or are destined for U.S. markets, so any disruption — whether through increased fees, political leverage, or outright control — would have far-reaching consequences.
China’s activities in the region highlight its strategic ambitions. While Beijing does not operate the Canal, its control over key ports and increasing involvement in infrastructure projects signal a broader effort to influence the waterway’s operations.
In 2018, U.S. pressure successfully thwarted China’s plans to build a massive embassy near the Canal. However, continued vigilance is required to counteract Beijing’s incremental gains.
Furthermore, the economic repercussions of Chinese control over the Canal’s critical infrastructure cannot be overstated. For the United States, the Canal is not merely a convenient maritime route but a linchpin in the broader framework of national security and economic stability.
As China seeks to expand its influence, America must act decisively to protect its interests.
A Renewed Opportunity for American Leadership
The expiration of Hutchison Ports PPC’s contract offers a pivotal opportunity for the United States to encourage Panama to pursue an open and transparent bidding process. American and allied companies must be incentivized to participate, ensuring the Canal’s operations align with democratic values and free-market principles.
This is where former President Donald Trump’s “America First” policies could provide a road map for future action. Trump’s administration consistently prioritized U.S. interests in global trade and infrastructure projects, and his approach to countering China’s economic ambitions resonated with many Americans. Reviving these principles in the context of the Panama Canal could be a critical step toward securing this strategic asset.
Moreover, the U.S. should integrate the Panama Canal into a broader strategy for Central America, addressing economic investment and security and governance challenges. Strengthening Panama’s institutions and infrastructure will bolster its resilience against external pressures, including those from China.
A Warning from History
Past American leaders understood the Canal’s value. Governor Ronald Reagan famously remarked, “We bought it, we paid for it, we built it, and we intend to keep it.”
While the Carter Administration’s 1977 decision to transfer control of the Canal to Panama was controversial, it underscored the importance of fostering a cooperative relationship with the Panamanian government.
Today, that partnership must be reinvigorated to counteract external threats and secure the Canal’s future.
Additionally, historical investments in the Canal provide a blueprint for modern action. Economic foresight and strategic necessity drove the United States’ original construction of the Canal. In the face of new challenges, America must again rise to the occasion, leveraging its resources and influence to safeguard this indispensable asset.
Conclusion: America Must Act
The Panama Canal is not merely a relic of America’s engineering prowess; it remains a living testament to the nation’s global leadership.
As China’s influence grows, the United States must take decisive action to protect this critical asset. By fostering transparent competition, strengthening bilateral relations with Panama, and integrating the Canal into a comprehensive regional strategy, America can ensure that the Panama Canal remains a beacon of free trade and security for generations to come.