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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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From: elmatador1/8/2025 12:31:08 AM
   of 13777
 
The US has the right to retake the Panama Canal.

"The Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal, or the Neutrality Treaty, between Panama and the United States guarantees permanent neutrality of the Canal with fair access for all nations and nondiscriminatory tolls.

Only Panama may operate the Canal or maintain military installations in Panamanian territory. The United States, however, reserved the right to exert military force in defense of the Panama Canal against any threat to its neutrality.

Any interpreted Chinese threat to the Canal’s neutrality could activate the U.S. forces through this treaty, meaning current and future Chinese interventions should be calculated with this potential response in mind."

"China’s influence in the Panama Canal has only grown since 2017 when then-president Carlos Varela severed diplomatic ties with Taiwan and recognized China, further opening the door to China’s expanded footprint in critical Canal infrastructure and laying the groundwork for alignment with the Belt and Road Initiative (BRI)."

The United States remains the top user of the Canal—in 2019, 66% of the cargo traffic transiting the Canal began or ended its journey at a U.S. port; cargo from or destined to China made up 13% of Canal traffic."

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