Austin News

At a Senate Commerce Committee hearing focused on the Panama Canal's impact on U.S. trade and national security, Senate Republicans voiced concerns about Panama's management of the canal. Allegations of corruption were raised, particularly regarding a no-bid port concession awarded to Chinese firm Hutchison Ports PPC. The senators expressed worries about China's increasing influence in Panama and suggested that Panama might be violating the Neutrality Treaty established when the U.S. transferred control of the canal.

Senator Ted Cruz questioned whether these actions could be considered violations of the treaty. He stated, "President Trump has made important arguments. Both the Chinese control over canal infrastructure and exorbitant fees charged for canal transits are violations of the Neutrality Treaty." Professor Kontorovich, an expert in international law, responded by highlighting potential remedies, including armed force as a last resort after exhausting negotiations.

Senator Dan Sullivan highlighted potential bribery concerning a "sweetheart deal" involving two Chinese companies operating major ports at both ends of the canal. He noted that these concessions were extended without bidding, raising questions about possible corruption. FMC Chairman Sola confirmed that objections had been raised and mentioned an audit request from Panama's comptroller.

Senator Marsha Blackburn raised concerns over fee manipulation by Chinese entities controlling canal infrastructure. She pointed out that toll structures might disadvantage U.S. companies and warned against potential pressure to use digital yuan instead of dollars.

Lastly, Senator Eric Schmitt warned against China's growing control over strategic waterways like the Panama Canal, stating that America is "sleepwalking into a carefully laid Chinese trap."