'Many, many casualties': Panama officials fear war with United States over control of canal

01 February

During his inauguration address, President Donald Trump threatened to seize control of the Panama Canal, and has not ruled out using the military to take it by force if necessary. Panamanian officials are now reportedly preparing for a worst-case scenario.

Politico reported Saturday that Panamanian officials have been taking Trump's words literally. Former Panama President Ernesto Pérez Balladares told the outlet that he believes "there will be many, many casualties on our side" which would lead to "international condemnation of the U.S." But he also suggested that Panama may retaliate by allowing migrants from South American countries like Colombia and Venezuela to flow freely north if Trump follows through on his threats.

“One of the things that we might do, if, you know, if things become worse,” Balladares said, “is just open up the gates.”

Secretary of State Marco Rubio is currently conducting his first foreign visit as the United States' top diplomat, focusing on Panama in particular. Rubio is reportedly headed to Panama City to smooth U.S. relations with its longtime ally in an effort to curb China's growing influence on the Central American country.

The Trump administration is reportedly aiming to offer alternatives to Panama that roll back China's presence while also allowing Panama to maintain control of the canal. Mauricio Claver-Carone, who is Trump's envoy to Latin America, is suggesting that the Panamanian government allow U.S. Navy and Coast Guard ships to pass through the canal free of charge. Crossing the canal can cost hundreds of thousands or even millions of dollars per ship. Many companies gladly pay the canal fees, as having to divert to Cape Horn at the bottom of Chile can be both costly and time-consuming, adding roughly 25 days to a trip on average.

In response to Trump's threats, Luis Almagro, who is the secretary-general of the Organization of American States (OAS) — a United Nations-type entity for countries in the Western Hemisphere — tweeted in December that he expects "the fullest and unrestricted compliance with the agreements signed" between Panama and the United States. But Claver-Carone is reportedly ignoring Almagro.

"I don’t care what the secretary-general of OAS says, I don’t care what some columnist says," Claver-Carone said in response, according to one of Politico's sources. "Do you think that we give a s—?"

Click here to read Politico's full report.

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