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The Panama Canal is American: Is it true?

In a recent interview with the Wall Street Journal, the head of this body, Ricaurte Vázquez Morales, denied the theory of Chinese control over the canal

Jan 21, 2025 18:20 67

The Panama Canal is American: Is it true?  - 1

In his inauguration speech, Donald Trump reiterated that the Panama Canal is actually American and announced that he would want it back because the country had violated the treaty with the United States. Is this true?

Donald Trump is back in the White House and in his inauguration speech he announced countless measures to “Make America Great Again“. Among other things, he confirmed his interest in the Panama Canal. The waterway connects the Atlantic and Pacific Oceans and is one of the most important transport routes for world trade. The US took over the construction of the canal in the early 20th century and controlled the facility until the end of 1999.

A deal, not a gift

Claim: In his speech at the Capitol, Trump said: “We were treated very badly for this stupid gift that should never have been given in the first place. And Panama broke their promise to us. The purpose of our agreement and the spirit of our agreement were completely violated“.

DW Fact Check: False

The Panama Canal is not a gift from the US to Panama, as Donald Trump claims, but is the result of long negotiations. Control of the canal was transferred from the US to Panama as part of the Torrijos-Carter agreement. The eight-point agreement was signed by the two countries on September 7, 1977, and under Article 5, the canal would be managed exclusively by the Republic of Panama after the agreement expired. The complete transfer of the canal to Panama was completed on December 31, 1999.

During his speech, Trump claimed that Panama had violated the object and spirit of the agreement. That is also not true. Under Article 4 of the agreement, both governments pledged to ensure that the canal would remain permanently neutral. According to Carla Martinez Mahain, a professor of political science at the University at Buffalo, that is still the case: “Any ship from any country that wants to pass through the canal has the right to do so after paying a toll,” she said.

Panama also agreed that the United States has the right to defend the canal if it is ever threatened by a foreign invader, the professor said. Mahain in his interview with DW. “None of those conditions have been violated and I don't understand why Mr. Trump is now claiming that the agreement has been violated“.

China has economic influence, but does it control the Panama Canal?

Claim: Trump also said that “China runs the Panama Canal, and we didn't give it to China. We gave it to Panama.“

DW fact check: False

Donald Trump often claims that China runs the canal. This is not true. The Panama Canal has been owned by Panama since December 31, 1999, after the United States completely withdrew from the canal. It is managed and operated by the Panama Canal Authority (Autoridad del Canal de Panamá, ACP), which is elected by the Panamanian government.

In a recent interview with the “Wall Street Journal“, the head of this body, Ricaurte Vázquez Morales, denied the theory of Chinese control over the canal. “The accusations that China manages the canal are unfounded“, he assured. Panamanian President José Raúl Mulino also denies a Chinese presence in the area: “There are no Chinese soldiers at the canal, for God's sake“, he said last December.

China has also categorically rejected the claim that it controls the canal. However, China is involved in many construction projects, and experts have expressed concern in particular about two ports that are managed by a subsidiary of Hong Kong-based CK Hutchison Holdings. China is the second largest customer of the Panama Canal after the United States, which means that after American cargo ships, Chinese ships are the ones that mostly pass through the waterway.

However, the company in question only manages the ports, but does not own them. Carla Martinez Mahain said in her interview with DW: “They do not decide who can pass through the canal, nor do they decide on the tolls to be paid. They do not own the canal. They do not own the ports.“

The United States did not suffer the most casualties

Claim: “The United States [...] lost 38,000 people building the Panama Canal“ – says another of Trump's claims about the Panama Canal.

DW Fact Check: False

The construction of the Panama Canal was started by the French before being taken over by the United States in the early 20th century. The website of the company that operates the canal states that about 25,000 people died during the construction of the facility. According to hospital records, 5,609 people died from diseases and accidents during the American construction period, when more than 55,000 people were employed.

The U.S. Centers for Disease Control and Prevention (CDC) found that most of the deaths were due to disease. “More than 22,000 French workers also died during the canal's construction in the 1980s, many of them from malaria and yellow fever,“ writes Matthew Parker in his book about the Panama Canal, “Hell's Gorge: The Battle to Build the Panama Canal”. He also notes that almost all of the deaths after the U.S. took over construction of the facility were workers from Barbados. In an interview with the BBC, he said: “Only about 300 were Americans.“