Panama Canal Shows Cold War Playing Out in Slow Motion

Panama Canal Shows Cold War Playing Out in Slow Motion

The struggle over Panama is not a trade dispute. It is a pre-kinetic tug-of-war between Beijing and Washington — and Canada should be watching.

OTTAWA — The Panama Canal is one of the great arteries of the world economy, a narrow thread of water through which roughly five percent of global maritime trade passes each year. For three decades, the ports at each end of it — Balboa on the Pacific, Cristobal on the Atlantic — were operated by a subsidiary of CK Hutchison, the Hong Kong conglomerate controlled by the family of billionaire Li Ka-shing. That arrangement ended this year when Panama’s Supreme Court ruled it unconstitutional, the government physically seized the terminals, and Beijing erupted in fury, threatening that Panama would “pay a heavy price.”

Share

Trump White House has asked U.S. military to develop options for the Panama Canal, officials say

WASHINGTON — The White House has directed the U.S. military to draw up options for increasing the American troop presence in Panama to achieve President Trump’s goal of “reclaiming” the Panama Canal, according to two U.S. officials familiar with the planning.

During a joint address to Congress last week, Trump said, “to further enhance our national security, my administration will be reclaiming the Panama Canal.” Since then, administration officials have not said what “reclaiming” means.

Share