Panama Canal Buyback Act; introduced This statement by Congressman Dusty Johnson (R.S.D.) has brought new attention to the status of the Panama Canal. The bill, backed by President-elect Donald Trump and several Republican lawmakers, seeks to authorize the canal purchase, citing national and economic security concerns.
Such a proposal is legally impossible and operationally unnecessary. This becomes abundantly clear when we examine the realities of this vital artery of world trade.
The canal primarily serves U.S. maritime traffic, with 74.7% of vessels departing from or heading to U.S. ports. Other major users include Japan, China, South Korea, Chile, the European Union, Mexico, Colombia, and Peru.
The canal handles many different types of vessels, including container ships, bulk carriers, liquefied natural gas and liquefied petroleum gas carriers, vehicle carriers, tankers, refrigerated cargo ships, and cruise ships. This annual global traffic of more than 10,000 vessels demonstrates the canal's important role in international maritime trade, eliminating the need for ships to make an 8,000-mile detour around South America.
But the canal is much more than a strategic maritime route. To visualize its importance, imagine this: cocoli rockswhere a huge container ship waits its turn to pass. Panamanian workers, the heirs of generations of canal operators, are leading their movements with precision, demonstrating the culmination of a long struggle for Panamanian administrative efficiency and national sovereignty. .
The history of the canal is fundamental to understanding its current status. Built by the United States in the early 20th century, it was an American enclave that literally divided the country of Panama in two for almost a century. The Canal Zone, a 16-mile-wide corridor, became a symbol of Panama's incomplete sovereignty. of Events of January 9, 1964Panamanian students' defense of their right to fly the national flag in the Canal Zone with their lives was the turning point that ultimately led to the 1977 war. Torrijos-Carter Treaty.
When the United States transferred full control of the canal to Panama on December 31, 1999, it was not a simple administrative act. This transfer implies the introduction of a sophisticated legal framework that makes any attempt at restitution virtually impossible through three levels of legal protection:
First, Panama's constitution declares the canal an “inalienable heritage” of the nation, meaning it cannot be sold, transferred, or ceded under any circumstances. Therefore, a constitutional amendment would be required to amend this provision.
Second, the Treaty on Perpetual Neutrality and Operation of the Panama Canal (signed by Panama and the United States, ratified by 40 countries, and in force forever) establishes Panama as the sole guarantor of the canal's neutrality and operation. are. This international treaty, to which the United States is also a party, does not consider a mechanism for transferring administrative authority to a third country. As a signatory to this treaty, the United States has a legal obligation to respect Panama's role as the canal's sole custodian.
Third, Panamanian law contains an operational framework that guarantees autonomous operation under Panamanian control, creating an administrative structure that has proven to be a notable success. .
Supporters of the buyback have cited concerns about Chinese influence in the region, particularly Panama's 2018 participation in the Belt and Road Initiative and Chinese companies' control of ports on both sides of the canal. It is extremely important to understand that the Panama Canal Authority has taken the following position: Operates with complete autonomy. The Authority's Board of Directors is comprised of 11 members, all of whom are Panamanian nationals, and is appointed according to a rigorous process established by law. Nine members are appointed by the Executive with the approval of Parliament, and one member is appointed by the Legislature and the Minister of Canals. Complete your team.
These numbers confirm the efficiency of this government. Since Panama took control, the canal has been vastly improved. The expansion, completed in 2016, was a $5.25 billion project under Panamanian management that allowed for the passage of larger ships and significantly increased the waterway's capacity. The canal generates more than $5 billion in tolls annually and maintains international standards for efficiency and safety.
The canal's decision-making process is transparent and subject to regular audits. Services and supply contracts are awarded through international open tenders in accordance with globally recognized transparency standards. This process is overseen by multiple governing bodies, including Panama's Office of the Inspector General and independent international auditors.
At a time when the stability of global trade routes is more important than ever, proposals to “buy back” the canal not only ignore insurmountable legal barriers, but also ignore fundamental realities. There is. The Panama Canal is functioning efficiently under the current administration and serves as a neutral point for the Panama Canal. Global maritime traffic. Concerns about Chinese influence, while legitimate in the broader geopolitical context, do not affect the operational independence and neutrality of the canal.
Examine the evidence. It is an autonomous government with a strong legal framework, efficient and transparent management, and a demonstrated ability to contribute to global trade. The canal belongs to Panama. Its sovereignty is non-negotiable, and its operational success under Panamanian rule is an irrefutable fact, even as it continues to serve as a vital artery for U.S. and global commerce. .
Nivia Rossana Castrellon is a former Deputy Minister of Foreign Affairs of the Republic of Panama.
