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LatinNews Daily - 20 January 2025

US lawmaker ups pressure on Panama over Canal

Panama: On 9 January US Representative Dusty Johnson (R-SD) introduced the Panama Canal Repurchase Act, a legislative bill which would authorise the US president to enter into negotiations with Panamanian authorities for the reacquisition of the Panama Canal. Initially under US control, the Canal was transferred to Panama on 31 December 1999 following a 1977 treaty signed by former US president Jimmy Carter (1977-1981). Donald Trump, who takes office today (20 January) as US president, has expressed strong interest in reclaiming the Canal, stating that it is of “vital importance” to the US, both for its national and economic security. Johnson echoed this in a press release issued by his team, saying that “owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe”. The Canal remains crucial to US trade and defence, with 72% of vessel transits through the Canal coming from or destined to US ports. In the press release, Johnson’s office states that “China’s growing influence in the Panama Canal region is cause for concern”, noting that Panama became the first country in Latin America to join China’s flagship infrastructure project, the Belt and Road Initiative (BRI), in 2018, and that investment from Chinese firms in Canal infrastructure “has only increased since”. Panama’s government has strongly rejected any suggestion of US reacquisition of the Canal and rejected the notion of Chinese involvement.

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