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If Trump wants Panama back, he’s got the wrong plan | Opinion

In 1913, workers labor to create the Panama Canal, one of the greatest engineering works of the 20th Century and through which five percent of the maritime world trade goes through. AFP PHOTO / Panama Canal Commission.
In 1913, workers labor to create the Panama Canal, one of the greatest engineering works of the 20th Century and through which five percent of the maritime world trade goes through. AFP PHOTO / Panama Canal Commission. AFP/Getty Images

President-elect Donald Trump’s Panama Canal rants are both wrong and right.

But even where he’s right, Trump risks getting it really wrong — including his questionable choice of a Miami-Dade county commissioner to be his ambassador to Panama. (More on that later.)

Trump, who becomes president again on Jan. 20, is wrong about the 1977 treaty the late President Jimmy Carter signed that handed U.S. control of the canal to Panama in 1999.

The deal didn’t “foolishly” subvert U.S. interests, as Trump and his America First fanatics are howling. It enhanced those interests diplomatically and economically.

It improved America’s dodgy image in the Americas — an example of Carter making the U.S. a more respectful hemispheric partner.

And it transformed the Panama Canal from an inefficient military asset into a vibrant commercial enterprise that now handles 6% of global cargo traffic — more than two-thirds of it going to or from U.S. docks like PortMiami.

All of which has made Panama an attractive investment target for communist China — which in the past decade has poured billions into port and other infrastructure projects there, giving dodgy Beijing an outsize presence.

And that’s where Trump is right.

A core term of the 1977 pact was keeping the Panama Canal geopolitically neutral — and the U.S. has reason to fear China’s influence could endanger that.

Chinese financing in the developing world is usually described as “predatory,” and its larger aim is to make countries not just debt-reliant on Beijing but more sympathetic to its totalitarian ideology.

But here’s where Trump gets it wrong.

You don’t turn Panama from Beijing to Washington by bully-threatening to retake control of the canal, presumably by military force. A retro, gunboat-diplomacy move like that would violate the 1977 treaty and make America a global pariah.

Yes, Trump could send troops into Panama, under the treaty’s defense-of-canal-neutrality article, to intimidate China — if that is, he wants to risk an even more blunderous military conflict with Beijing.

Nor do you woo Panama by screaming the canal is “ripping off” U.S. shippers.

The Panama Canal’s transit fees are in line with other major canals like Suez, and if they’ve risen recently, it’s because of the costs of dealing with a severe drought.

Too complacent

This actually brings us to how Trump should confront China in Panama.

Let’s remember that Panama started partnering with China in 2017, during Trump’s first presidency. In 2020, with Trump still in the White House, Chinese companies answered the call to help develop a water management system there, specifically to combat drought.

U.S. companies don’t know how to do that?

More importantly, the U.S. government doesn’t know how to create incentives for U.S. companies to do that?

This isn’t just a Trump failing. U.S. presidents and congresses, Democrat and Republican, have been noticeably complacent about China’s incursion into this hemisphere in this century — when Beijing’s bilateral trade with Latin America has leaped to $500 billion.

Trump, therefore, should urge Congress to pass bills like the bipartisan Americas Act. It would revive the U.S.-led hemispheric economic partnership in part by making the U.S. more serious about “nearshoring” industrial production back into this hemisphere.

But that will require astute U.S. diplomatic management. Trump won’t likely get that with his pick for U.S. ambassador to Panama: 34-year-old Miami-Dade county commissioner and Trump acolyte Kevin Marino Cabrera.

Cabrera, after all, is perhaps best known for taking part with the right-wing hate group Proud Boys in a menacing, door-pounding protest against then-Democratic House Minority Leader Nancy Pelosi during her 2018 visit to Miami.

Although Cabrera has done some maturing as a county commissioner, that doesn’t make him a match for China’s new ambassador to Panama, Xu Xueyuan, one of Beijing’s more seasoned and effective diplomats.

Still, on Planet Trump being seasoned and effective matters much less than sounding disruptive and enraged.

So I’m betting that’s the tack Trump and Cabrera will take in Panama. I just hope, for the hemisphere’s sake, that I’m really wrong.

Tim Padgett is the Americas Editor for WLRN, covering Latin America, the Caribbean and their key relationship with South Florida. Contact Tim at tpadgett@wlrnnews.org

Padgett
Padgett

This story was originally published January 3, 2025 at 12:01 PM.

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