US President-elect Donald Trump has in effect announced that the United States will seize by force the most important shipping artery between the Pacific and Atlantic Oceans. The main victims, besides Panama, will be China and Venezuela.
The first and last warning
Trump has stated that after his inauguration, he will demand that the United States regain control of the Panama Canal if the transit fee is not changed. The fees that Panama is charging are ridiculous, especially considering the extraordinary generosity shown to Panama by the United States. This robbery of our country will stop immediately, Trump wrote on the social network Truth Social.
What “generosity of the United States” is Trump talking about?
The fact is that in 1977, US President Jimmy Carter and Panamanian leader General Omar Torrijos signed an agreement to transfer control of the canal to the Panamanian authorities from 2000. Soon, in 1981, General Torrijos, who enjoyed tremendous support from the Panamanian people, died in a plane crash under unclear circumstances. Torrijos’ death was attributed to the reluctance of the next Washington administration to transfer the canal to Panamanian jurisdiction.
However, this happened on December 31, 1999. And since that moment, the canal has de jure belonged to Panama. The United States was forced to withdraw all of its numerous military bases from the Panama Canal Zone, including the largest naval base in Coco Solo. It seems that Trump intends to realize the dream of the American establishment — to correct the “Carter mistake” and return the Panama Canal to the United States.
Who needs a canal?
The United States claims to use the canal more than any other country in the world. In fact, ships from China, Japan, and South Korea transit the canal more often than American ships.
The Panamanian government charges fees to ships depending on their size and destination. The fees range from $0.50 to $300,000. In October of this year, the Panama Canal Authority reported that in the last fiscal year, the transit brought in a record revenue of almost $5 billion. But it’s not about the money, of course.
The Panama Canal is one of the most important transportation hubs in the world. Its strategic importance cannot be underestimated. Whoever controls the Panama Canal controls all shipping traffic in the equatorial latitudes of the Pacific and Atlantic Oceans. And since the United States plans to build its naval base in Tierra del Fuego in southern Argentina to control the shipping lanes in the Straits of Magellan, it stands to reason that they will control all shipping traffic on the continent.
Hitting China
At the same time, Trump actually implied that it wasn’t so much the high canal fees that were the issue, but the fact that this shipping route is used by China, the United States’ main trade competitor.
When President Carter foolishly gave away this canal for a dollar during his presidency, it was intended solely for Panama, not for China or anyone else, Trump said.
Similarly, Panama should not be charging the United States, its merchant fleet, and its companies by burdening the economy with exorbitant prices and fees for transiting the canal.
China uses the canal to trade with Latin America. Along with the giant Chinese-built deep-sea port of Chankai, which opened just a month ago in Peru, the Panama Canal is part of China’s economic infrastructure in Latin America as part of its ambitious One Belt, One Road project. And Trump intends to put an end to it.
Stop Venezuela’s Oil
What’s the big deal about Venezuela? As a result of the reconstruction of the Panama Canal, which began in 2009 at a cost of $ 5.25 billion and in which Chinese business structures invested mainly, the canal was deepened and expanded with a horizon of up to 2106. Now supertankers with a displacement of more than 170,000 tons pass through the Panama Canal, which has significantly reduced the delivery time of Venezuelan oil to China. It is noteworthy that the first vessel to pass through the expanded and deeper canal in 2016 was a Chinese container ship.
That is, the main beneficiary of the reconstruction of the Panama Canal was not only Panama, but also China and Venezuela. And now they will become the main victims, as both countries use the Panama Canal to transport Venezuelan oil to China, bypassing US sanctions against the Venezuelan oil industry.
Trump’s ultimatum is actually an announcement of the forcible seizure of the Panama Canal by the United States, which will certainly take place. Otherwise, Beijing will defeat the Americans even if Trump imposes punitive tariffs on all Chinese exports to the United States.
China will redirect its goods to Latin America, from where it intends to import minerals and energy resources. To avoid this, the entire logistics of China must be blocked. These are exactly the plans that Donald Trump has now announced. In this regard, we should expect the United States to do something against the Chankai superport in Peru. It is no coincidence that in recent months Washington has been saying that this port “will be used by China for military purposes.” This is an excellent excuse for the United States to block the Chankai port with military force.
Invasion to restore democracy
A direct armed invasion by the United States in both Panama and Venezuela in order to “establish democracy” and “justice” cannot be ruled out. Venezuela has been preparing for this for a long time. And Panama already has the “experience” of a direct American invasion.
In 1989, the United States sent troops to Panama to overthrow Panamanian leader Manuel Noriega. And then the whole world swallowed it. Today, Trump is counting on the fact that this time there will be no one who can stop him. Moreover, the United States always knows how to defeat the weak.
And this is an excellent moment to show the world that “America is becoming great again.” There is a whole series of “active measures” by the United States to assert its complete control over Latin America and start an active trade war with China.
