Senate Republicans explore Panama Canal takeover, Cruz rips Central American nation as bad actor

WASHINGTON — A top Senate Republican accused Panama Tuesday of violating the treaty giving the Central American nation control over the vital Panama Canal shipping lane — saying the country had waved through illicit transfers of crude oil by Iran and exposed itself to dangerous Chinese influence.“Even as it takes advantage of the global maritime system, Panama has emerged as a bad actor,” charged Senate Commerce, Science and Technology Chairman Ted Cruz (R-Texas).“Panama has for years flagged dozens of vessels in the Iranian ghost fleet, which brought Iran tens of billions of dollars in oil profits to fund terror across the world.And Chinese companies have won contracts, often without fair competition, as [Beijing’s] infamous Belt and Road Initiative has come to Panama.“China often engages in debt-trap diplomacy to enable economic and political coercion in Panama,” Cruz went on.

“It also seems to have exploited simple corruption.”Cruz also explained that Panama’s “high fees for canal transit disproportionately affect Americans, because US cargo accounts for nearly three-quarters of Canal transits,” while 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,” he said.

“Panama’s government relies on these these exploitative fees — nearly one-tenth of its budget is paid for with canal profit.”Announcing his interest in taking back the canal earlier this month, President Trump warned of Beijing steadily increasing its influence over the waterway.“China is operating the Panama Canal,” he claimed in his inauguration speech Jan.20.

“We didn’t give it to China, we gave it to Panama, and we’re taking it back.”Tuesday’s hearing kicked off formal efforts to investigate whether Panama is in violation of the 1977 Panama Canal Treaty and Neutrality Treaty, which could al...