U.S. Challenges CHINA in Panama

The Panama Canal’s pivotal role in global trade has prompted the U.S. to tackle China’s growing influence, with Ambassador Cabrera at the forefront.

At a Glance

  • Ambassador Cabrera focuses on curbing China’s expansion in the Panama Canal.
  • 60% of Panama Canal transit is directed at U.S. borders.
  • Military cooperation between Panama and the U.S. faces scrutiny.
  • An audit revealed a $600 million debt of a Chinese firm to Panama.

U.S. Steps to Counter Chinese Influence in Panama

Ambassador Kevin Cabrera has outlined a firm stance against the encroaching influence of China in the Panama Canal. U.S. focus on this strategic waterway is paramount, as over 70% of vessels navigating the canal have destinations within the United States. Cabrera recently defended a memorandum with Panama that augments military collaboration, which he believes safeguards Panamanian sovereignty. The agreement, however, has met resistance locally. He contends that China’s financial and cyber activities pose a more significant threat than U.S. military involvement.

Audit findings bolstered Cabrera’s arguments, revealing that a Chinese enterprise owes Panama a substantial $600 million. Against this backdrop, he speaks of sovereignty concerns coupled with economic implications. China’s influence in the region extends through projects such as a massive port in Peru, under the Belt and Road Initiative. Meanwhile, U.S. efforts to restore regional dominance reflect a revitalization of the Monroe Doctrine.

Tensions Over Military Presence and Transit Fees

Cabrera addresses criticism of increased U.S. military presence under the new memorandum. He counters allegations, labeling opposition as dishonest and contrasting it with historical agreements. U.S. military exercises in Panama, conducted via Panamanian consent, are justified as safeguards for canal security. This dynamic thwarts potential Chinese control, a risk highlighted by China’s top trading standings in Latin America.

“U.S. Ambassador to Panama Kevin Cabrera on Thursday said that the United States is working together with Panama to eliminate “China’s malign influence” in the Panama Canal.” – Kevin Cabrera

The ambassador is also challenging the transit fee imposed on U.S. ships, viewing it as an undue financial burden given America’s protective role. Discussions are underway to waive these fees for U.S. commercial vessels, aligning with aims for economic security while fostering U.S. presence. He assured ongoing negotiations exploring options for exempting military ships from such duties.

Regional Responses and Future Prospects

The Monroe Doctrine, a cornerstone of U.S. policy, has seen both support and criticism. Some Latin American nations view this U.S.-centric policy outdated, as regional partnerships diversify amidst Chinese presence. China’s economic growth in the region has made disentangling from its influence a challenge for the U.S.

“And he [Trump] has articulated many concerns about the malign influence of the Chinese Communist Party in the Canal Zone and in our hemisphere, and we are working with Panama to reduce and eliminate that Chinese influence. It is something that cannot exist.” – Kevin Cabrera

Amidst these geopolitical maneuvers, nations seek balanced relationships, assessing their own sovereignty. Cabrera’s remarks reiterate Panama’s cooperation with the U.S., prompting a reevaluation of U.S. strategies in Latin America. The canal’s stewardship foregrounds the broader contention of regional supremacy between the U.S. and China.