Currently, the Panama Canal is owned and operated by the Panama Canal Authority, an independent agency of the Panamanian government. The United States relinquished full control of the canal to Panama on December 31, 1999, as stipulated by the Torrijos-Carter Treaties of 1977.
While the treaties allow the US to intervene militarily to defend the neutrality of the Canal, they don't grant the US the right to reassert control or unilaterally take back the canal. However, the idea of the US regaining control over the Panama Canal has been discussed.
Potential
options discussed
Buying or negotiating ownership: One option suggested is the US negotiating to buy the Canal or its ownership from Panama. However, this is seen as highly unlikely due to strong nationalist sentiment in Panama regarding the Canal's sovereignty.
Military intervention: Some have suggested military intervention to retake control, but such action would have significant international ramifications and likely be in violation of international law and the existing treaties.
Economic measures: The possibility of using economic pressure, such as sanctions or withdrawing trade agreements, has also been raised. While potentially less drastic than military action, the long-term effectiveness and international support for such measures are questionable.
It is important to note that any US action to regain control of the canal would be highly controversial and could have significant consequences for US-Panama relations and international trade. Currently, the US is focused on partnering with Panama to secure the canal and counter perceived threats, such as China's growing influence in the region.
How will the US regain control over the Panama Canal
The US and
the Panama Canal: regaining control is a complex issue
The United States does not currently control the Panama Canal; it transferred full control of the waterway to Panama on December 31, 1999, according to the 1977 Torrijos-Carter Treaties. The treaties guaranteed Panama would gain control and outlined the terms for its operation, defense, and eventual withdrawal of U.S. military forces. Under the Neutrality Treaty, the US retains the permanent right to defend the canal from any threat that might interfere with its continued neutral service to ships of all nations.
However, the
question of the US regaining control of the canal has been raised by former
President Donald Trump, citing the canal's importance to U.S. trade and
national security, as well as concerns over China's growing
influence in the region.
Several possible avenues have been discussed, each with its own
complexities:
· Negotiating its purchase: One
possibility involves the US negotiating to buy back the canal from Panama. This
was proposed in legislation introduced by U.S. Representative Dusty
Johnson, according to
Newsroom Panama.
However, this would likely face strong opposition in Panama, as the canal is
considered a symbol of national sovereignty and a source of revenue, accounting
for roughly 4% of the country's GDP in 2024. Panamanian President José Raúl
Mulino has affirmed that "every square meter of the canal belongs to
Panama and will continue to," according to NBC 7 San Diego.
· Utilizing the neutrality
treaty: The 1977 Neutrality Treaty grants the US the right to act to
ensure the canal remains open and secure if its operation is threatened due to
military conflict. This could involve military action to protect the waterway,
but it doesn't automatically mean reasserting control or unilaterally retaking
ownership, which experts argue would violate international law.
· Military intervention: This would
be a more drastic measure and would likely involve significant complications,
including potential international condemnation and a counterinsurgency
operation requiring a large number of troops, according to NewsNation.
· Economic measures: The US could also consider using economic pressure, such as canceling its free trade agreement with Panama, isolating its banking sector, or denying visas to Panamanian citizens. However, such actions could harm Panama's economy and generate resentment, potentially leading to further instability.
It is important to note that the US and Panama are currently working together on security cooperation and the US maintains a keen interest in the canal's security and efficient operation given its importance to global trade and US interests. According to Reuters, US Defense Secretary Pete Hegseth recently vowed to "take back" the Panama Canal from Chinese influence during a visit to Panama in April 2025. He emphasized deepening security cooperation with Panamanian security forces and stated that China would not be allowed to "weaponize" the canal.
Overall, any attempts by the US to regain control over the Panama Canal would be a complex and multifaceted undertaking, facing significant legal, diplomatic, and political challenges.
https://www.google.com/search?q=how+will+the+us+regain+control+over+the+panama+canal
In 2025,
Panama's economy is experiencing growth, particularly in exports, driven by the
transportation sector and the Panama Canal. The country is projected to
surpass $1 billion in exports, with a 25.1% increase in exports during the
first quarter compared to the same period in 2024, according to Newsroom Panama,. This growth is fueled by both
registered exports and value-added exports under special regimes.
Key highlights for Panama's trade in 2025:
Exports: Panama's exports are projected to exceed $1 billion, with a significant increase in the first quarter of 2025, according to Newsroom Panama.
Imports: While exports are growing, Panama's imports are also substantial, with the US being a major trading partner for both exports and imports.
Trade Balance: Panama's trade balance shows a deficit, indicating that imports exceed exports.
Economic Growth: Panama's GDP is projected to grow by 4.5% in 2025, according to the Gedeth Network, with the transportation sector, including Panama Canal tolls, being a major contributor.
Major Export Destinations: The Netherlands, Taiwan, and the United States are among the top destinations for Panamanian exports.
Major import Sources: The United States is a major source of imports for Panama, with refined petroleum, aircraft parts, and unspecified commodities being significant import items.
Specific
Product Trends:
Raw sugar,
gold, and jewelry are key export items, while refined petroleum is a major
import.
In May 2025,
specific trade figures between the US and Panama include:
· Panama exported $62.7 million to the US.
· Panama imported $837 million from the
US.
· This resulted in a trade deficit of $774
million.
· Panama's exports to the US increased by
$20.4 million (48.1%) compared to May 2024.
· Panama's imports from the US decreased
by $116 million (12.2%) compared to May 2024.
Overall, Panama's economy in 2025 is characterized by strong export growth, driven by the transportation sector and the Panama Canal, but with a continued trade deficit.
https://www.google.com/search?q=panama+imports+exports+2025
Information
on the Panama Canal's revenue for the 2025 fiscal year (October 2024 -
September 2025) indicates projected revenues of $5.62 billion USD. This
reflects a significant increase compared to the estimated revenues for the 2024
fiscal year, which were around $4.99 billion.
Panama's
nominal GDP for 2025 is projected to be around $91.68 billion, In 2025,
Panama's nominal GDP per capita is projected to be $20,080. The population
of Panama in 2025 is estimated to be around 4.57 million
Land Area: The total land area of Panama is 28,703 square miles.
Low water levels began affecting Panama Canal operations in early 2023, and restrictions on the number and size of ships passing through the canal were implemented starting in June 2023 due to historically low water levels in Lake Gatun.
The low
water levels were primarily caused by a prolonged and severe drought in
Panama, according to the
World Weather Attribution.
This drought was significantly influenced by the El Niño weather pattern, according to AP
News and Carbon Brief. While some studies initially suggested
climate change as a key factor, subsequent research indicated that El Niño was
the primary driver of the low rainfall in the region.
The impact
on canal operations has been significant, leading to a decrease in vessel
transits and disruptions to global shipping. This has resulted in longer wait
times for ships, increased shipping costs, and the need for some vessels to
take alternative routes or lighten their cargo loads, says Woodwell
Climate.
The Panama
Canal Authority employs approximately 9,000 to
10,000 people. This workforce is responsible for the operation,
maintenance, and security of the Panama Canal. That’s 2% of their
population.
https://www.google.com/search?q=how+many+employees+does+the+panama+canal+operation+employ
Comments
Lower Ocean Levels caused low water problems in the Panama Canal. Panama needs to end their contract with China that allows them to own and control part of the Canal. Revenue from Canal Operations is 5% of Panama’s nominal GDP. Panama’s $774 million Trade Deficit is out of control. Their response to the US appears to be “Leave us alone, we’re stupid”.
Norb Leahy, Dunwoody Ga Tea Party Leader
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