Conversations on Strategy Podcast – Ep 56 – Dr. R. Evan Ellis – The Panama Canal

Transcript

This podcast was recorded on January 28, 2025, and updated on February 11, 2025.

In this episode, Dr. R. Evan Ellis discusses the Panama Canal, including its history and significance to the United States, China’s involvement in the region, and Secretary of State Marco Rubio’s visit to Panama in February 2025.

Keywords: Panama Canal, Secretary of State Marco Rubio, China, trade, President Jimmy Carter

Stephanie Crider (Host)

You’re listening to Conversations on Strategy. The views and opinions expressed in this podcast are those of the guests and are not necessarily those of the Department of the Army, the US Army War College, or any other agency of the US government.

I’m happy to be here today with Dr. Evan Ellis. Ellis is a professor of Latin American studies at the Strategic Studies Institute at the United States Army War College.

First, I just want to welcome you back. I know that we’ve been talking for a while about recording another podcast. Thank you for making time to join me for another Conversations on Strategy.

Dr. Evan Ellis

Stephanie, it’s a pleasure to be part of the program today. Thanks for having me.

Host

So, we’re talking about Panama today. I’d like to really dig in and get a better understanding of things here. What did the original agreement regarding the Panama Canal say?

Ellis

Well, by “original agreement,” of course, we’re talking about the agreement on September 7th, 1977, in which President [Jimmy] Carter agreed with President [Martín ] Torrijos of Panama to, essentially, return the Panama Canal and, in turn, Panama agreed to, essentially, defend and maintain and operate the canal. So, there are really two components of this. One, which is the more commonly known Panama Canal Treaty, which made arrangements for the return, again, at the end of December 31st, 1999, although there were different enclaves that the United States was able to hold on to after that point and that one by one [it] released or turned over to Panama in an organized fashion. Panama then, in turn, agreed to defend the canal and to operate the canal. Indeed, Article 4 of the treaty that talks about its obligations for protection and defense is a very important component of that, and that also served [as] the basis for the military coordination that we have today with Panama, in which we not only work with their border service SENAFRONT but also the air and naval service SENAN, international police, and also conduct one of the largest military exercises, multilateral exercises, that we conduct in the hemisphere, which is the two-part PANAMAX exercise.

But, it’s also important to note that aside from the Panama Canal Treaty itself, there was a second related treaty invoked the same day—the Neutrality Treaty—and that made provisions that the Panama government would operate this in what was referred to as a just and equal or equitable fashion and at what was called a reasonable fashion from the perspective of rates. In other words, the commitment on the Panamanian side was not only to ensure that all nations, the United States, China, et cetera, had access to it but also that the rates that it would charge would not prejudice one country or another—that even though you could have different rates for different classes of ships at different times—but, essentially, every country would have equal right and prioritization. Now, having said that, there are some important exceptions to that. Number one is pointing out that essentially, US military warships get to go to the head of the queue, and there’s also a separate related Treaty of Montería, which actually gives the Colombian government and the Costa Rican government [the] right to have free access or free use of the canal. So, there’s a number of different little-known details but, really, the bottom line is the turnover of the canal but [also] the corresponding responsibility for neutral operation