Can Trump acquire the Panama Canal?

On Jan 20th, 2025, The Trump administration will hit the ground running with a flurry of new executive orders, radical changes to government, and the possibility of of taking back the management or actual ownership of the Panama Canal. How is this achieved? How can President Trump walk into office and declare that the Canal along with Greenland and the idea of making Canada a part of the United States? Lets examine first the Panama Canal.

The US took over the project in 1904 and opened the canal in 1914. The US continued to control the canal and surrounding Panama Canal Zone until the Torrijos–Carter Treaties provided for its handover to Panama in 1977. After a period of joint American–Panamanian control, the Panamanian government took control in 1999. It is now managed and operated by the Panamanian government-owned Panama Canal Authority.

Trump has several options here, and judging from his agenda, we can expect the following to happen:

1. The Panama Canal generates revenue from tolls, electricity sales, and maritime services. In the fiscal year 2024 (October 2023–September 2024), the Panama Canal reported $4.99 billion in revenue, which was a 1% increase from the previous year. The canal’s net income also increased by $300 million, and operating costs decreased by 5%. 
2. Here are some other details about the Panama Canal’s revenue:
3. Tolls-Tolls are the primary source of revenue for the Panama Canal, accounting for about 80% of its income. Tolls for large cargo ships can be as much as $450,000, while cruise ships pay by the number of passengers. 
4. DroughtIn 2023, the Panama Canal experienced a severe drought that reduced the number of ships that passed through the waterway. The canal authority restricted the number of ships that could pass each day and limited their maximum draft. 
5. Government revenue-The Panama Canal passes along most of its toll revenue to the Panamanian government. The canal’s activity contributes 23.6% of the government’s annual income.

$5 billion in revenue is a nice chunk of change that could be passed along to the American Consumer to help pay down our debt. The most evident reasons though are strategic in nature, closing the door to China and removing any control over the canal in the future.

Trump’s agenda would have to include the following in Congress, and then to the executive Branch:

President negotiates – The President is the primary negotiator for treaties between the US and other countries. 

Senate advises and consents – The Senate Committee on Foreign Relations considers and reports on treaty documents. The Senate then gives its advice and consent to ratification, which requires a two-thirds supermajority vote. 

President ratifies – The President signs the treaty and arranges for the exchange of instruments of ratification. 

President proclaims – The President can proclaim the treaty in force by Executive Order. 

Congress implements – Congress may need to pass legislation to implement the treaty into domestic law.

I dont see Democrats telling the President that renegotiating the treaty or ratifying it as a means to achieve financial gain for the country, and to expand our control over strategic territory is a bad thing.

Let’s move on to Greenland. What type of treaty does the US have with Greenland?

There were multiple treaties between the United States and Denmark in 1951, including a defense agreement and a treaty of friendship, commerce, and navigation: 

Treaty of Friendship, Commerce, and Navigation – This treaty was signed in Copenhagen on October 1, 1951. The treaty aimed to strengthen the relationship between the two countries, and encourage economic and cultural ties. It was based on the principles of national treatment and most-favored-nation treatment. 

1951 Defense Agreement – This agreement gave the United States almost unlimited access to defense facilities in Greenland. It replaced an earlier agreement signed by the Danish Minister to Washington in 1941. The agreement established Thule Air Base as the only defense area in Greenland, and the flags of all three countries fly over it. 

Why would President Trump be interested in Greenland? The US Geological Survey (USGS) estimates that Greenland’s offshore area contains around 17.5 billion barrels of oil and 147 trillion cubic feet of natural gas. The Geological Survey of Denmark and Greenland estimates that Greenland’s west coast alone contains about 18 billion barrels of oil. In 2021, all exploration and production of oil and natural gas was halted by Greenlands Interior Government and sited Natural renewable energy as a alternative. There are literally Trillions of dollars in oil and natural gas.

Now on to Canada. The reasons here are obvious. By acquiring a treaty with Canada to become part of the United States, the economic implications could be so wild, that most Americans cannot fathom. The Northern Border would be more secure, and we would have a strategic defense set up against China and Russia’s back door. However the most exciting part of this is the United States creating a new currency that would be both canadian and american combined.

This could have very positive side effects for the nation’s deficit. Bitcoin and other crypto currencies could evolve not to mention these:

Canada has many natural resources, including:

Minerals – Canada is a world leader in the production of many minerals, including gold, nickel, uranium, diamonds, lead, coal, copper, iron ore concentrates, and potash

Oil and natural gas – Canada has the world’s second-largest oil reserves. In 2022, crude bitumen was Canada’s top natural resource contributor, making up one-third of the total resource value. Canada also produces natural gas, currently at a rate of 18.4 billion cubic feet per day. 

Hydroelectricity – Canada has hydropower in all regions of the country, with the top-producing provinces being Quebec, British Columbia, Manitoba, Ontario, and Newfoundland and Labrador. 

Forests – Canada has many forests, including the coniferous forests of British Columbia’s coast and central interior, which support the province’s lumber industry. 

Canada’s population for the massive amount of area is very low. The nation’s debt is only 40 Billion, and with the stroke of a pen, Trump could wipe the nation’s debt free, and negotiate a treaty that would open up the land of Canada for real estate development, population growth, and make it a #1 spot for Americans to relocate. This would open jobs in new parts of the country, and give jobs to immigrants already here in the states. The implications are enormous.

Branch County and Michigan are very close to the Canadian Border. We as a state and county would benefit immensely economically if Canada became a 51st state. Our gas prices would be some of the lowest, if not the lowest in the nation. Heating would also drop in price. Economic booms would happen with construction of homes, logging, and entire city structures. It’s a wild yet exciting idea to discuss.