WSJ: US retired general warns against military takeover of Panama Canal

American retired Gen. Barry McCaffrey, the former U.S. drug czar who once led the Southern Command, has said a military takeover of the canal today would be illegal, spark outrage across Latin America and require U.S. troops to occupy the country. 

“We would sound like it was the 1850s. If you’re a foreign illegal power, how would we operate the canal without Panamanians?” McCaffrey said, Caliber.Az reports via The Wall Street Journal.

The Panama Canal Treaty of 1977 and Panama’s constitution include neutrality principles to shield canal operations from interference from foreign powers and from Panama’s central government. Under the neutrality treaty, the U.S. has the right to act if the canal faces military or hostile threats against the peaceful passage of ships. 

In late 2024, President-elect Donald Trump expressed intentions to reclaim U.S. control over the Panama Canal, citing concerns over high fees imposed on American vessels and alleging undue Chinese influence. He suggested that military or economic measures might be employed to achieve this objective.

However, according to WSJ, Panama is vulnerable to Trump’s pressure precisely because of its close ties to the U.S. It has no central bank or armed forces. The U.S. has intervened here before, as recently as 1989, when troops invaded to overthrow then-dictator Manuel Noriega. 

The canal is a symbol of national identity here and a source of wealth. About half its $5 billion in annual revenue goes to government coffers. When it took over, Panama invested more than $5 billion to build larger locks, allowing more vessels to pass and triggering investments at U.S. ports that got busier as a result.   

By Khagan Isayev