Panamanian Supreme Court Boots China From the Canal
Donald Trump spent the last year dismantling the CCP's encroachment in the Caribbean, especially its control of both ends of the Panama Canal. Panama's Supreme Court just delivered the coup de grâce.
by Rod D. Martin
February 3, 2025
Did you think Trump’s effort to eject China from the Panama Canal had been thwarted? Guess again.
Just as I told you, while the world focused on the supposed need for Xi Jinping to agree to Trump’s terms — and while the pundit class scoffed at the very idea — an audit by Panama’s Comptroller found significant irregularities in the 25-year extension of the concession granted in 2021. He filed suit last summer, and the case went to the Supreme Court. Late last week, the Court found Hong Kong-based CK Hutchison Holdings’ concession to operate ports at the Panama Canal unconstitutional.
Oops.
Like Maduro, Xi should have taken the deal. Now China walks with nothing. The Ayatollah should take note.
Back in April, the United States and Panama signed a new bilateral security agreement to defend the Canal, one of the most strategically vital choke points in the Western Hemisphere. It largely resolved the issues enunciated by President Trump after his election, in effect “taking back the canal”…from China. It re-established a U.S. military presence, obtained toll-free priority passage for the U.S. Navy, and laid the legal groundwork to boot the CCP from control of Panama’s ports.
Until last week, that last bit remained uncompleted. It remains no longer.
The Canal isn’t just a relic of some bygone past. It remains a vital chokepoint of global trade and military mobility, especially for the United States. An incredible 72% of all ships using the Canal are either coming from or heading to American ports; 40% of all U.S. container traffic flows through it. The Canal cuts crucial weeks off transit times for U.S. forces, which would otherwise have to travel around South America. Losing the Canal would cripple the U.S., especially in a crisis involving China.
In the wake of the ruling, Panamanian President José Raúl Mulino has stated that the ports will continue operating without interruption during the legal transition, with the Panama Maritime Authority working alongside the current operator. Once the concession is finally ended, Maersk will operate the ports on an interim basis until a new concession is awarded, likely to the U.S. consortium China had blocked.
Uninterrupted operation of the Canal is a matter of both economic and national security. It’s also about confronting the systematic infiltration of Chinese power into the Western Hemisphere — and removing the Trojan Horses we allowed to be wheeled through our gates.
