Historical background of the Panama Canal

The Panama Canal is an artificial waterway that connects the Pacific Ocean to the Atlantic Ocean, passing through the Isthmus of Panama. This canal has a long history and has been an important political and economic asset for many countries, including the United States. To understand why it’s so important, let’s explore some key aspects of its history and the current situation.

1. Construction of the Canal:

   • Initially, a canal was designed by the French under the leadership of engineer Ferdinand de Lesseps (known for building the Suez Canal). However, construction was halted due to diseases and financial problems.

   • After the French failure, the U.S. took over the project and completed it in 1914. It became a monumental engineering achievement, helping to connect the two oceans and playing a significant role in international trade.

2. U.S. Control:

   • The United States took control of the Panama Canal and the surrounding area after the Hay-Bunau-Varilla Treaty (1903), which granted the U.S. the rights to control and administer the canal, while Panama declared its independence.

   • The U.S. administered the canal until 1999, when, after the Torrijos-Carter Treaties (1977), control of the canal was transferred to Panama.

Rights and Economic Gains

1. Economic Benefits from the Canal:

   • The Panama Canal has been a crucial transportation hub. It significantly reduces the distance and time needed to travel between the two oceans. This makes it very important for global trade, especially for the transport of oil and industrial goods.

   • After Panama gained control, it started generating significant revenue from the tolls ships pay to pass through the canal. These earnings are an essential source of income for Panama’s economy.

2. Rights to Administration and Financial Gains:

   • Panama has the rights to manage the canal and the financial gains from the tolls paid by ships passing through. The Panamanian government uses this revenue for investments in infrastructure and economic development.

What is Donald Trump Seeking?

In recent years, former President Donald Trump has made several comments regarding the Panama Canal. He has expressed interest in revisiting the agreement that transferred control of the canal to Panama, suggesting that the U.S. could benefit more from controlling it.

1. Trump’s Proposal for Reclaiming Control:

   • Trump has criticized some aspects of Panama’s administration of the canal, suggesting that the U.S. could derive greater benefits from controlling it, leveraging its strategic position.

   • Despite these remarks, there has been little movement to alter the agreement, and Panama has strongly defended its sovereignty over the canal.

2. Potential Economic Gains and Strategy:

   • If the U.S. were to reclaim control of the canal, it might boost economic profits for the U.S. However, this would have significant political and economic repercussions for relations with Panama and other countries that use the canal.

In conclusion, the Panama Canal is a highly valuable economic asset, and discussions about its control are tied to the economic and geopolitical interests of major powers like the United States. However, this is a highly sensitive issue, and any move to change the status quo could have major international consequences.

CREATED by:

“KORÇA BOOM”