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Senate Committee Examines Panama Canal’s Impact on U.S. Trade, National Security

by WZMQ
January 28, 2025
A A

By Brendan Scanland

WASHINGTON, D.C. — The Panama Canal has been cast into the spotlight during the early stages of the Trump administration. 

The United States built the canal in the early 1900s as a way to facilitate the transit of commercial and military vessels between the Atlantic and Pacific Oceans. Control of the waterway was relinquished to Panama in 1999, under a 1977 treaty signed by President Jimmy Carter.  

“We have been treated very badly from this foolish gift that should have never been made,” said President Donald Trump following his inauguration earlier this month. 

President Trump has recently alleged that China is operating the Panama Canal, a key shortcut linking the Pacific and Atlantic oceans. 

“We didn’t give it to China. We gave it to Panama, and we’re taking it back,” said Trump, who also claimed the U.S. is getting ripped off more than other countries. 

“The purpose of our deal and the spirit of our treaty has been totally violated. American ships are being severely overcharged,” the President added. 

Panama has consistently denied Trump’s claims, saying all nations are treated equally under a neutrality treaty. Officials in Panama have also denied claims that China is controlling the canal’s operations. 

“I am concerned about Chinese owned ports in Panama and their proximity to the canal,” said Sen. Maria Cantwell (D- WA) during a Senate Committee on Commerce, Science and Transportation hearing Tuesday morning. 

Tuesday’s hearing took a closer look at the canal’s impact on U.S. trade and national security, specifically, China’s growing presence in the region. 

“The Panama Canal was not just given away. President Carter struck a bargain. He made a treaty and President Trump is making a serious and substantive argument that that treaty is being violated right now,” said Senator Ted Cruz (R- TX) during the hearing. 

Many lawmakers in Washington share concerns about China’s global influence, including at and around the Panama Canal. 

“The result was that we gave it back to Panama, and the Chinese moved in to both ends of the Canal,” said Rep. Mike Kelly (R- PA). 

“I’m concerned about Chinese proliferation around the world,” said Rep. Nick Langworthy (R- NY). “We have a global superpower that is trying to replace the United States at all levels.” 

Congressman Langworthy says the U.S. has to deter China at key pressure points across the globe. 

“The Panama Canal’s about as key as it gets,” said Langworthy. “It is such a critical shipping lane for goods and services for the United States of America,” said Langworthy.  

About a month ago, then President-elect Trump suggested the U.S. could seize control of the canal. Trump has not ruled out military force to overtake the canal, however that would be a very complicated task. Using military force at the canal is not a popular concept among lawmakers on Capitol Hill.

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