History of the Panama Canal
The Panama Canal's history begins with early Spanish explorers envisioning a shortcut between the Atlantic and Pacific Oceans. The idea was revisited in the 19th century with French attempts led by Ferdinand de Lesseps, which failed due to financial issues and high death rates from diseases like malaria and yellow fever. In 1903, the United States, under President Theodore Roosevelt, supported Panama's secession from Colombia to secure the rights to build the canal. The construction, marked by significant engineering and health improvements, was completed in 1914, and the canal became a vital artery for global trade and U.S. military movement between the oceans.
Reasons for the U.S. Handing It Back
The U.S. control over the Panama Canal was contentious due to sovereignty issues and regional tensions. Here are the key reasons for the handover:
Sovereignty and Nationalism: Panama had long contested U.S. control over the Canal Zone, which was seen by many Panamanians as an infringement on their sovereignty. Protests and riots, such as those in 1964, underscored the nationalistic fervor for control over their territory.
Shift in U.S. Policy: By the 1970s, U.S. foreign policy had begun to shift towards decolonization and improving relations in Latin America. Presidents from Truman to Ford had considered handing over the canal, but it was President Jimmy Carter who actively pursued this policy, culminating in the Torrijos-Carter Treaties signed in 1977. These treaties provided for the gradual transfer of control to Panama, with full control handed over by December 31, 1999.
Economic and Strategic Considerations: The canal was losing strategic importance for the U.S. military, especially with the ability to ship around South America improving. Also, the canal's economic benefits for the U.S. had diminished as global trade routes diversified.
Current Actions by Panama and Perceived Unfairness to the U.S.
Recent tensions between the U.S. and Panama regarding the canal focus on economic and operational issues:
Toll Increases: Panama has raised tolls for using the canal, which was necessitated by operational costs, including managing water resources during droughts, and funding for canal expansions like the 2016 project for larger ships. These increases have been contentious, particularly for U.S. shipping companies which are significant users of the canal.
Perceived Unfairness: Some U.S. stakeholders argue that the toll increases are disproportionate or unfairly applied, impacting U.S. trade more than others. Additionally, there's a perception among some that Panama is not managing the canal in the spirit of the treaties, which guarantee neutrality and access. However, Panama argues that these increases are necessary for maintenance and improvements, applied uniformly, and part of its sovereign rights.
Geopolitical Concerns: The involvement of China in Panama, particularly in infrastructure projects around the canal, has raised strategic concerns in the U.S., fearing a potential shift in influence over this critical maritime route. This dynamic adds complexity to U.S.-Panama relations concerning canal governance