Cruz previously held a hearing focused on the canal’s crucial role in U.S. trade
Texas Insider Report WASHINGTON, D.C. – In case you missed it, U.S. Sen. Ted Cruz (R-Texas), Chairman of the Senate Committee on Commerce, Science, and Transportation, recently traveled to Panama and underscored the Panama Canal’s strategic importance to the United States. The Senate Commerce Committee has primary jurisdiction over the Panama Canal due to its role in the facilitation of global trade and U.S. commerce.
Sen. Cruz met with top Panamanian officials, including the Minister of Economy and Finance, Felipe Chapman; Minister of Public Security, Frank Abrego; and Panama Canal Authority Administrator, Ricaurte Vásquez Morales. During these meetings, Sen. Cruz reiterated the growing threats posed by China and other foreign actors seeking to exert influence over the region, threatening both American and Panamanian national and economic security.
While in Panama, Sen. Cruz said, “There is undoubtedly a strong Chinese presence, and I believe a threat to the canal. The purpose of my visit is number one, to try to strengthen the longtime friendship and alliance between the United States and Panama. And number two, I'm the Chairman of the Senate Committee on Commerce, Science, and Transportation, which, among other things, has jurisdiction over the Panama Canal and the Panama Canal is vital, both to national security and economic security of the United States and Panama.”
Background
Previously, Sen. Cruz convened a Senate Commerce Committee hearing to examine the growing number of challenges facing the maritime industry in the region due to capacity limitations and increased transit fees. Sen. Cruz sounded alarms over China’s growing foothold in Panama, which poses a direct threat to U.S. trade. China has exploited Panama’s institutional weakness to evade U.S. sanctions and has taken controlling stakes in critical infrastructure surrounding the Panama Canal. During the hearing, multiple senators raised concerns about Panama’s management of the canal, citing allegations of corruption, suggesting that they may be violating the Neutrality Treaty.
One week after the hearing, a preliminary deal was announced that would give an American company primary control of Port Balboa and Port Cristobal, which are container ports on either end of the canal. However, the deal has faced delay amid pressure from China seeking to secure a stake in the deal, stalling progress to protect both American and Panamanian interests.
Sen. Cruz concluded, “China is not America's friend, and China is not Panama's friend, and if God forbid, a military conflict emerges between the United States and China, I believe there is an unacceptable risk that China would act to shut down the Panama Canal, which would have a devastating impact on the United States and an even worse impact on Panama…
“There is strong American interest in expanding and improving commerce and transportation through the Panama Canal. The United States built the Panama Canal more than a century ago and our nations have been close friends for a long, long time. The economies of both the United States and Panama benefit enormously from the Panama Canal, and there are strong American interests in investing in ports on both ends of the Panama Canal and assisting in new infrastructure, whether it is gas pipelines to transport gas from one end to the other, or whether it is building a new reservoir and expanding the ability to ensure there's sufficient water to operate the canal at maximum capacity.”
“There is strong American interest in expanding and improving commerce and transportation through the Panama Canal. The United States built the Panama Canal more than a century ago and our nations have been close friends for a long, long time. The economies of both the United States and Panama benefit enormously from the Panama Canal, and there are strong American interests in investing in ports on both ends of the Panama Canal and assisting in new infrastructure, whether it is gas pipelines to transport gas from one end to the other, or whether it is building a new reservoir and expanding the ability to ensure there's sufficient water to operate the canal at maximum capacity.”
