Security threats to Panama extend far beyond extremist guerrilla groups. Colombian drug traffickers traditionally have used Panama as a primary transshipment point for cocaine and heroin, while they take advantage of Panama's dollar-based economy to launder billions in illicit profits. With the U.S. withdrawal, many experts are warning that drug lords could quickly fill the void. The greatest fear is of the Colombianization of Panama. While such developments are unlikely, the risks are too great to ignore the possibility of worst-case scenarios.
China also plays a major role in assessments of the canal's vulnerability.
Although the company says the purchases constitute nothing more than a business venture, conservatives in Washington are warning that China could soon be in control of the canal. I don't blame the Chinese for taking advantage of that. Mike Booth, general manager of Panama Ports Co., a wholly owned subsidiary of Hutchison-Whampoa, characterized the accusations being made against China and his company as absurd. We are an international company operating in 18 or 19 ports around the world. Hutchison-Whampoa also operates a large port in Freeport, Bahamas, even closer to the U.S. mainland than Panama.