The Atlantic staff writer Tom Nichols has raised concerns about President-elect Donald Trump’s apparent fixation on taking control of the Panama Canal, suggesting that this obsession may be driven by his personal business interests in the area. This implication raises serious questions about potential conflicts of interest and the prioritization of private gains over national policy.
Former President Trump’s argument posits that the United States should not be obligated to pay Panama fees for its ships traversing the Panama Canal. This stance is based on the historical contribution of American workers who played a significant role in constructing the Canal, with over 5,000 individuals losing their lives during its construction from 1904 to 1914. Notably, among these workers, those of African descent constituted a majority and experienced the highest mortality rates.
In a Christmas Day interview on MSNBC with anchor Yamiche Alcindor, Nichols asserted that President Trump’s unexpected remarks concerning Panama are likely connected to his personal interests in the region.
ALCINDOR: Tom, how serious do you think President-elect Trump is this time?
NICHOLS: He’s probably got some pebble an issue about something that’s happened in Panama that relates to his interests. That’s usually what provokes one of these kind of out-of-left-field tirades from Donald Trump. It’s important for people to remember that this wasn’t simply a gift put under a Christmas tree 45 years ago, that this is actually the relationship with Panama. And the Panama Canal is governed by a Senate-ratified treaty that already lays out the relationship between the United States and Panama.
And when Donald Trump says, ‘well, we’ll just take it back,’ you know, just as in his first term, I think in his second term, we’re going to be saying something using a phrase that we used a lot during his first four years, which is things don’t work that way.
“That’s not how any of that works. So, you know, he can say it and he can complain about it and he can get big cheers about it at conservative meetings. But that’s that’s not going to happen.”
Watch the clip via MSNBC.
Trump’s Business Ventures in Panama
In 2011, Trump and his business partners opened the Trump Ocean Club International Hotel and Tower in Panama City. The 70-story skyscraper was Trump’s first international hotel venture and one of the tallest buildings in Latin America. However, the project was plagued with issues from the start:
-One of Trump’s partners defaulted on debts and filed for bankruptcy shortly after the tower opened.
-Investigations alleged that a main broker who sold units in the tower had connections to organized crime figures who may have used the
properties for money laundering.
-The tower earned the nickname “Narco-a-Lago,” a play on Trump’s Mar-a-Lago estate in Florida.
Legal Troubles and Tax Evasion Accusations
Trump’s business dealings in Panama have led to ongoing legal battles and accusations of financial misconduct. In June 2019, hotel owners accused Trump Panama Hotel Management LLC and Trump International Hotels Management LLC of failing to pay a 12.5% tax on income earned in Panama. Second, the Trump entities were alleged to have misreported the number of employees at the hotel to evade contributions to Panamanian social security. Third, Panamanian authorities conducted a tax audit on the hotel, uncovering significant discrepancies. And fourth, the owners of the former Trump-managed hotel filed a lawsuit in Manhattan federal court, claiming that Trump companies intentionally evaded taxes and exposed them to millions of dollars in liability.
While there is no direct evidence linking Trump’s threats about the Panama Canal to his business interests, some observers have speculated about a potential connection: In fact, Ana Navarro Flores, a political strategist, suggested on social media that Trump’s threats may be a cover for his own tax liabilities in Panama. And let’s not forget that the timing of Trump’s canal threats coincides with ongoing litigation related to his hotel business in Panama.
Trump’s complicated history with Panama, including his business ventures and legal disputes, adds a layer of complexity to his recent statements about the canal. While he publicly cites concerns about fees and Chinese influence, his personal financial interests in the country may be influencing his stance.
It’s important to note that the Panama Canal has been under Panamanian control since 1999, based on a treaty signed with the US in 1977. And any attempt to retake control of the canal would face significant legal and diplomatic challenges.
As the situation continues to unfold, it remains to be seen how Trump’s business interests and legal troubles in Panama will intersect with his political ambitions and foreign policy positions.