Brazil and Panama Strengthen Ties Over Canal Management

Brazilian President Luis Inacio Lula da Silva hosted Panama’s President Jose Raul Murino on Thursday, where they inked several agreements aimed at enhancing cooperation in managing the Panama Canal.

Lula announced that Brazil would adhere to a 1977 treaty regarding the canal’s permanent neutrality, aligning with over 140 countries. This move follows comments from former President Donald Trump, who hinted at a potential return of American control over the canal. The Trump administration had expressed concerns about Panama’s governance of the canal, claiming it compromised its neutrality and possibly breached earlier agreements established during Jimmy Carter’s presidency.

Lula’s renewed focus on the U.S. influence in the canal comes amid a rocky period in Brazil-U.S. relations. Trump had criticized Lula’s government for suppressing conservative voices, declaring Brazil a national security risk due to serious human rights violations, which led to a significant tariff imposed on Brazilian imports to the U.S. and sanctions against a prominent Brazilian justice.

Rather than directly confronting Trump, Lula opted to engage with China, seeking diplomatic support. Brazil and China are part of BRICS, which includes other nations often at odds with U.S. interests.

During their meeting in Brasilia, Lula and Murino explored opportunities for boosting trade and addressing environmental concerns, all while making efforts to enhance diplomatic relations.

“Brazil stands firm in support of Panama’s sovereignty over the canal, which was hard-won after years of struggle,” Lula remarked. He noted Panama’s efficient management of this vital corridor, ensuring safety for ships worldwide, stating it justified Brazil’s participation in the treaty supporting the canal’s neutrality.

The treaty indicates that no foreign country should hold influence over the canal, a stipulation established during the Carter administration.

Interestingly, Murino’s trip marks the first visit of a Panamanian president to Brazil since 2008, which Lula described as a fresh start in their relationship.

“This visit is a revival of our cooperation and friendship,” Lula noted, emphasizing their shared commitment to multilateralism and sustainable development.

Murino added that independence among nations is essential, suggesting that no nation exists in a vacuum.

On the topic of the canal, Lula declared Panama had “conquered” it after extensive negotiations with the U.S. Murino, however, appeared to downplay the notion of “conquest,” affirming Panama’s capability to manage the canal with neutrality, countering Trump’s critiques about too many concessions to China.

Both presidents signed agreements to enhance cooperation between their countries, facilitating better communication and operations within maritime and transportation sectors.

Murino’s engagement with the U.S. has experienced hurdles since Trump’s return to office, particularly concerning immigration issues under President Biden, which seemed unexpected for him.

“The Panama Canal is vital for us. It’s run by China, and we didn’t hand it over to them,” he said, reflecting frustration over the perceived misuse by the Chinese.

U.S. Secretary of State Marco Rubio raised concerns during his confirmation hearing regarding China’s influence over the canal and possible breaches of the treaty that governs its management. He acknowledged there might be grounds for questioning the conditions under which the canal was transferred to Panama.

Shortly after Rubio’s visit, Murino declared Panama’s exit from China’s Belt and Road Initiative, which has faced criticism for encouraging unsustainable debt in poorer nations.

Brazil’s stance on the canal issue has grown assertive, with Lula reaching out to China about sanctions while reportedly avoiding a call to Trump. Lula mentioned his preference to contact leaders like Xi Jinping over Putin.

Ultimately, Lula did connect with Xi, who offered assistance in alleviating Brazil’s tariffs and reaffirmed China’s support for Brazil’s sovereignty and interests as reported by state media.