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Critical Topics and Their Significance for the UPSC CSE Examination on January 03, 2025

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Why has Trump called the Panama treaty ‘foolish’?

For Preliminary Examination:  Current events of national and international importance

For Mains Examination: GS II - International relations and treaties

Context:

On December 22, 2024, Donald Trump threatened to take back the Panama canal, calling the transfer treaty “foolish”. He said, “Our Navy and Commerce have been treated in a very unfair and injudicious way....we will demand that the Panama canal be returned to us, in full, and without question.” Panama’s President José Raúl Mulino rejected Trump’s threat, and said, “I want to express precisely that every square metre of the Panama canal and its adjacent area belong to Panama, and will continue to belong to Panama.”

Read about:

Panama Canal

US-Panama treaty

Key takeaways:

Why is Trump concerned about Panama?

• The main source of the U.S. President-elect's frustration lies in the steep transit fees charged by the Panama Canal Authority (ACP) for American vessels. In 2023, severe droughts affected the water levels in Lakes Gatun and Alhajuela, which are critical to the canal's lock operations. This led the ACP to reduce the number of crossing slots for ships by 36%, resulting in higher transit costs.
• Another significant concern is the growing Chinese influence in the region. Since Panama signed onto the Belt and Road Initiative (BRI) in 2017, Chinese investments in the area have surged. Hutchison Ports PPC, a subsidiary of a Hong Kong-based firm, now manages two ports near the canal’s entrances. This has raised alarm about China's potential control over logistical operations and its capacity to monitor U.S. naval activities.

What is the U.S.-Panama Treaty?

• The Panama Canal, an 80-kilometer artificial waterway connecting the Atlantic and Pacific Oceans, is vital for global trade, facilitating 6% of the world's maritime commerce. Constructed by the United States and opened in 1914, the canal symbolized U.S. technological achievement and economic influence.
• Control of the canal was transferred to Panama on December 31, 1999, under the Torrijos-Carter Treaties. The first agreement, the Panama Canal Treaty, annulled the Panama Canal Zone and officially handed over canal operations to Panama. The second, the Permanent Neutrality Treaty, designated the canal as a neutral waterway open to all nations, while granting the U.S. the right to safeguard its neutrality and priority access in military emergencies.

How has Panama responded?

President José Raúl Mulino has refuted Trump’s allegations, defending Panama’s transit rates and the operational independence of the canal. He explained that transit fees are determined through a formal process based on international standards. Mulino also denied any foreign interference, including from China or the European community, emphasizing Panama’s sovereignty. Addressing claims of Chinese soldiers operating in the canal, he categorically stated, “There is not a single Chinese soldier in the canal, nor will there ever be.”

What lies ahead?

Despite Mr. Trump’s threats, the issues related to fee increases and logistical challenges are expected to be resolved through diplomatic negotiations. While the U.S. might exert pressure on Panama to renegotiate, Panama is likely to seek international support to reinforce its sovereignty. Meanwhile, China has responded to the controversy, with Foreign Ministry spokesperson Mao Ning describing the canal as a remarkable accomplishment for the Panamanian people and reiterating China’s respect for Panama’s sovereignty

 Follow Up Question

1.Which of the following statements about the Torrijos-Carter Treaties concerning the Panama Canal is/are correct?

1. The treaties resulted in the immediate transfer of the Panama Canal from the United States to Panama in 1977.
2. The Permanent Neutrality Treaty ensures that the Panama Canal remains open and neutral for vessels of all nations.
3. Under the treaties, the United States retains the right to intervene militarily to protect the neutrality of the canal.

Select the correct answer using the codes below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3

Land Acquisition Act 2013

For Preliminary Examination: Right to Property, Fundamental rights

For Mains Examination: GS II - Governance

Context:

Farmers from Punjab have been camping at the Khanauri and Shambhu borders of Punjab and Haryana since February, demanding legal recognition for the Minimum Support Price (MSP) of crops, along with several other demands from the central government. One of their key demands is the implementation of the Land Acquisition Act of 2013.

Read about:

Right to Privacy

Right to Property

Key takeaways:

• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013 (LARR Act) replaced the colonial-era Land Acquisition Act of 1894, bringing significant reforms to the land acquisition process in India.
• The Act establishes a comprehensive framework for land acquisition and provides fair compensation to those affected by it.
• It requires that when the government acquires private land for public purposes, the landowners must receive compensation of up to four times the market value in rural areas and twice the market value in urban areas. This marked a significant departure from the previous legislation, which often undervalued land compensation.
• One of the most important aspects of the 2013 Act is its emphasis on social impact assessment. Before any acquisition can take place, a detailed social impact assessment must be conducted to evaluate the potential benefits and adverse effects of the project on the affected population. This assessment includes public hearings and consultations with local bodies, ensuring transparency and public participation in the acquisition process.
• The Act mandates consent requirements for land acquisition. For private projects, the consent of 80% of affected families is required, while for public-private partnership projects, 70% consent is necessary.
• However, this consent clause doesn't apply to government projects. This provision aims to protect farmers and landowners from forcible acquisition of their land.
• Rehabilitation and resettlement provisions form a crucial part of the Act. It ensures that affected families receive not just monetary compensation but also support for resettlement.
• This includes provisions for housing, employment, and other social security measures. The Act specifically recognizes various categories of affected families, including landowners, agricultural laborers, and artisans who might lose their livelihood due to land acquisition.
• The legislation also includes safeguards for food security. Multi-crop irrigated land can only be acquired under exceptional circumstances, and when such land is acquired, an equivalent area of cultivable wasteland must be developed for agricultural purposes.
• Another significant feature is the time-bound process. If the acquired land remains unused for five years, it must be returned to the original owners or to the state land bank. This prevents speculative land acquisition and ensures that land is acquired only for genuine purposes.
• The Act includes special provisions for Scheduled Castes and Scheduled Tribes, recognizing their unique relationship with land. It provides additional safeguards against displacement of these communities and ensures their proper rehabilitation when displacement is unavoidable.
• However, the implementation of the Act has faced several challenges. The lengthy process of social impact assessment and consent requirements has been criticized for causing delays in project implementation. Some states have also enacted their own versions of the law with modifications to suit their local conditions.
• Despite these challenges, the LARR Act 2013 represents a significant step forward in protecting the rights of landowners and affected families while balancing the needs of industrial development and infrastructure projects.
• It emphasizes the principles of fair compensation, transparency, and informed consent, marking a departure from the colonial-era approach to land acquisition.
• The Act continues to evolve through various amendments and interpretations, reflecting the ongoing dialogue between development needs and social justice in India's growing economy. Its implementation remains crucial for ensuring equitable and sustainable development across the country

• Right to Constitutional Remedies (Article 32) serves as the cornerstone of these safeguards. Often described by Dr. B.R. Ambedkar as the "heart and soul" of the Constitution, it empowers citizens to directly approach the Supreme Court for the enforcement of their fundamental rights.
• The High Courts can also be approached under Article 226 for similar relief. Through these articles, citizens can seek various writs: Habeas Corpus (to secure release from unlawful detention), Mandamus (to compel public authorities to perform their duties), Prohibition (to prevent lower courts from exceeding their jurisdiction), Certiorari (to quash orders of lower courts/tribunals), and Quo Warranto (to challenge the legitimacy of a public office holder).
• The Constitution provides special protection against discriminatory laws through Article 13, which declares that any law violating fundamental rights shall be void to the extent of such violation.
• This provision applies to both pre-constitutional laws and laws made after the adoption of the Constitution. The judiciary has the power to review and strike down such laws, establishing the doctrine of judicial review.
• The framers also incorporated specific safeguards for minorities and disadvantaged groups. Articles 15 and 16 prohibit discrimination while allowing for special provisions for the advancement of socially and educationally backward classes, Scheduled Castes, and Scheduled Tribes. These protective discriminations ensure equality in substance rather than merely in form.
• Under Article 33, Parliament can modify the application of fundamental rights to armed forces to ensure proper discharge of their duties and maintenance of discipline. However, such modifications must be reasonable and not completely negate the rights. Similarly,
• Article 34 allows Parliament to indemnify persons for acts done during martial law, providing a balance between individual rights and national security.
• The Constitution guarantees cultural and educational rights through Articles 29 and 30, protecting minorities' right to conserve their language, script, and culture, and establish and administer educational institutions. These rights cannot be suspended even during emergencies, ensuring the preservation of India's diverse cultural fabric.
• During a national emergency, Article 359 allows the President to suspend the enforcement of fundamental rights (except Articles 20 and 21). However, the 44th Amendment Act of 1978 imposed restrictions on this power, ensuring that Articles 20 and 21 (right to life and personal liberty) remain inviolable even during emergencies. This amendment came as a response to the excesses during the Emergency period (1975-77).
• The judiciary has developed several doctrines to strengthen these safeguards. The Basic Structure Doctrine, established in the Kesavananda Bharati case (1973), prevents Parliament from amending the Constitution in ways that would destroy its essential features, including fundamental rights.
• The Public Interest Litigation (PIL) mechanism has made access to justice more democratic by allowing any public-spirited person to approach courts on behalf of those unable to do so themselves.
• The Supreme Court has also expanded the scope of fundamental rights through progressive interpretation. For instance, it has read the right to life under Article 21 to include various rights such as the right to clean environment, education, and privacy. This dynamic interpretation ensures that fundamental rights remain relevant and responsive to emerging challenges.
• State Human Rights Commissions and the National Human Rights Commission serve as additional institutional safeguards, investigating human rights violations and recommending remedial measures. These bodies complement the judicial system in protecting fundamental rights