Austin News

Senator Ted Cruz (R-Texas) expressed concerns over the Panama Canal's impact on U.S. trade and national security during a Senate Commerce Committee hearing titled “Fees and Foreign Influence: Examining the Panama Canal and Its Impact on U.S. Trade and National Security.” He highlighted China's increasing influence in the region, stating that it has been able to evade U.S. sanctions and impose unfair charges on American commerce and naval ships.

Cruz pointed out that the canal facilitates 40 percent of U.S. seaborne container traffic and six percent of global trade. He emphasized, "The Panama Canal was not just given away: President Carter struck a bargain," referring to the treaty signed by President Carter to cede control of the canal to Panama.

The senator also mentioned potential violations of this treaty, which he said have been brought to light by former President Trump. These include concerns about Chinese companies controlling ports at either end of the canal, giving China "the ability to block the canal without warning." Cruz warned that this situation poses risks to U.S. national security.

High transit fees for using the canal were another concern raised by Cruz, who noted they disproportionately affect Americans since U.S. cargo accounts for nearly three-quarters of canal transits. He claimed these fees contribute significantly to Panama's budget while impacting American taxpayers and consumers.

Cruz also addressed other issues such as record revenue generated by the canal authority despite reduced transits due to drought conditions, as well as allegations against Panama for flagging vessels linked with Iran’s oil profits funding terrorism.

During his remarks, Cruz criticized U.S. airlines for not resuming direct flights between America and Israel, resulting in one witness attending virtually due to limited flight options from Israel.

"I find the situation unacceptable," said Cruz about airline services between America and Israel, adding that he is pressing airlines to resume flights soon.

The hearing included discussions about challenges related to American interests in light of China's growing presence in Central America through initiatives like its Belt and Road Initiative involving infrastructure projects across various countries including Panama itself where corruption was alleged against Chinese companies winning contracts unfairly according what some experts suggest may be part debt-trap diplomacy strategy aimed at gaining economic leverage over developing nations worldwide - something critics argue should concern policymakers given geopolitical implications involved here especially when considering how crucial role played historically speaking within broader context US foreign policy objectives throughout past century alone let alone recent years under current administration leadership moving forward into future endeavors yet come ahead time will tell if indeed any changes occur either way ultimately remains seen until then we must remain vigilant prepared 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