WASHINGTON (NewsNation) — The Senate Committee of Commerce, Science, and Transportation is holding a hearing Tuesday to examine the Panama Canal’s impact on trade in the U.S. and national security.
Committee Chair Sen. Ted Cruz, R-Texas, opened the session by stating that the U.S. funded and built the Panama Canal, but Panama is now treating America unfairly.
Ranking Member Maria Cantwell voiced concerns about China’s role in Panama, noting that the canal is the largest U.S. logistical presence in Panama and employs thousands of people. She added that a revitalized maritime strategy would be essential not only for the U.S. economy but also for national security.
No one injured after Border Patrol, cartel shootout in Texas
Witnesses at the hearing included representatives from the Federal Maritime Commission (FMC) and shipping law experts.
Louis Sola, the FMC chairman, shared concerns raised by Panama Canal Authority officials, particularly about foreign influence in the region.
“I would say that my biggest concern is that, when a Chinese contractor gets a contract in Latin America, they usually put a clause in there that they bring their own workers in from China. These workers are housed in camps outside. and these camps will have guards on them, and they will have sometimes… in Panama for example, they have barbed wire around the camp, so we really don’t know who’s in the camps.
Sen. Dan Sullivan questioned a law professor about hypothetical scenarios, asking whether Chinese bribery of Panamanian officials would violate the U.S.-Panama treaty. The professor replied no unless it directly threatened the canal’s operations.
The hearing also included questions about if there is evidence of Chinese spies, to which the response was, “Not so far.”
Doomsday Clock now closer than ever to ‘midnight’
Why does Trump want to regain control of the Panama Canal?
The hearing follows President Donald Trump’s vow to regain control of the Panama Canal, even suggesting using military force.
Trump has said as part of his argument that fees the U.S. pays are “exorbitant.” Panamanian President José Raúl Mulino pushed back stating that the rates are established publically, taking market conditions into account.
In 1914, the U.S. finished constructing the Panama Canal and over 60 years later President Jimmy Carter signed a treaty that would gradually hand over control of the canal to Panama. Trump claims the U.S. is being “ripped off” by Panama over the 1977 canal treaty, which he calls a “foolish” giveaway.
The 51-mile man-made waterway features locks and reservoirs that connect the Atlantic and Pacific Oceans, saving ships from a 7,000-mile detour around Cape Horn at South America’s southern tip. It significantly reduces shipping time and costs, especially for time-sensitive or perishable goods.
NewsNation’s digital producer Taylor Delandro and The Associated Press contributed to this report.
