Evidence shows Panama may be in violation of Canal treaty: US Senator
In his opening statement at this week’s Senate Commerce Committee hearing titled “Fees and Foreign Influence: Examining the Panama Canal and Its Impact on U.S. Trade and National Security,” Chairman Ted Cruz (R-Texas) stressed the importance of the Panama Canal for the American economy and voiced concerns over China’s growing influence in the region. The Panama Canal facilitates 40% of US seaborne container traffic and 6% of all global trade, but China has exploited Panama’s institutional weakness to evade US sanctions and impose unfair charges on US commerce and naval ships, he said, as per a communique.
He pointed out that when President Jimmy Carter ceded the Canal to Panama (in 1979, with the country taking control in 1999), he made a treaty. “President Trump is making a serious argument that treaty is being violated right now. This Committee has jurisdiction under Senate rules over the Panama Canal, and… we will examine evidence of potential violations”.
He added:
“President Trump has highlighted two key issues: the danger of China exploiting or blocking passage through the Canal, and the exorbitant costs for transit.”
“Chinese companies are building a bridge across the Canal – at a slow pace so as to take nearly a decade – and control container ports at either end. The partially-completed bridge gives China the ability to block the Canal without warning, and the ports give China ready observation posts to time that action. This situation poses acute risks to US national security.”
“Meanwhile, the high fees for Canal transit disproportionately affect Americans, because US cargo accounts for nearly three-quarters of Canal transits. US Navy vessels pay additional fees that apply only to warships. Canal profits regularly exceed $3 billion. This money comes from both American taxpayers and consumers in the form of higher costs for goods.”
Source: Exim News Service: Washington, Jan. 29