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Trump, the hill and the Panama Canal

06/02/2025

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The World

Juan Diego Molina Méndez

Institute for Culture and Society

The power of the United States in the world leaves no one indifferent. Since the emergence in the 19th century of concepts such as manifest destiny and the birth of the Monroe Doctrine, the country has always been identified as the city on the hill that John Winthorp dreamed of as an example for nations. The expansionist ambition of the U.S. political class has led to numerous expansions of its borders, from Texas to California, Puerto Rico, Hawaii and even Alaska. However, many of us who thought we had witnessed the end of empires after World War II are now surprised to see the rebirth of Washington's expansionist ambitions.

Weeks before Donald Trump's inauguration, news of the new White House occupant's expansionist ambitions began to trickle in. And those claims sounded like something from another era. Perhaps the most striking demand was the one made by the U.S. president about the Panama Canal. The Panamanian president, José Raúl Mulino, responded through a video in which he diplomatically answered Trump, insisting on stressing that any action that violated the neutrality of the Canal would go against the Torrijos-Carter agreements, by which the inter-oceanic passage was left in Panamanian hands in 1999.

Although Latin America has often been seen as the backyard of the United States, the truth is that in recent decades Washington has neglected its relations with the region. It was during the Cold War that the U.S. presence in the region became evident through initiatives such as the School of the Americas or the Alliance for Progress cooperation project , which sought to counteract the growing Soviet and Cuban presence. The end of this period radically changed the approach to relations with the region, and the focus shifted to the promotion of free trade through the Free Trade area of the Americas (FTAA).

The ambitious project to create a trade area to facilitate exchanges from Alaska to Tierra del Fuego never came into operation and, although some bilateral free trade agreements were signed, the rise of leftist leaders in South America put an end to the plan. Figures such as Chavez or Correa meant a brake for Latin America's relations with the North American power and the strengthening of nationalist feelings and positions against free trade and freedom. Since then, Washington has seen the lands located south of the Rio Grande more as a problem than as an opportunity.

In an attempt to regain the geopolitical primacy of the United States, and in response to China's growing presence in the region, the new Secretary of State, framework Rubio, has designated Latin America as the destination of his first trip. In this way, the incoming Administration seeks to underscore its renewed interest in the area and to tighten its grip on a region that has traditionally been its natural area of influence. The first destination of Rubio's Latin American tour was Panama, where on Sunday, February 2, he met with Mulino, in a meeting marked by Trump's declared intentions to retake control of the Canal.

The strategic importance of the Central American country is not only due to the inter-oceanic route, but also to the fact that during 2024 it was the passage through which 185,000 migrants crossed on their way to the United States. The results of Rubio's trip were not long in coming and after the meeting, the Panamanian president announced to the media the signature a memorandum of understanding with U.S. authorities to more effectively manage repatriations from the Darien area.

It was a core topic for the United States to reach an understanding with the Panamanian authorities on the growing Chinese presence in the Canal zone. Since 1997, a Hong Kong-based business has been operating two ports, and the Asian giant's investments have multiplied in recent years, managing critical infrastructure for inter-oceanic trade. Another issue of concern to Washington is Panama's participation in the Belt and Road initiative, with which China seeks to strengthen its political and commercial presence in different strategic points around the world. The Panamanian president announced that his government would not renew Panama's participation in the Chinese initiative, as well as the increase of US investments in Panama.

After diplomatic crises with Colombia, Mexico, Canada and Panama in the first two weeks of Trump's administration, a state of alarm has been generated in the foreign ministries of the region. Although it is vital for the United States to revive its presence in Latin America, the only way it can be that city on the hill is through a foreign policy that abandons the old vision of the region as a backyard and treats it as the vital partner it is.