CD312: Threatening Panama's Canal

President Trump has been threatening to “take back” the Panama Canal since he regained power. In this episode, listen to testimony from officials serving on the Federal Maritime Commission who explain why the Panama Canal has become a focus of the administration and examine whether or not we need to be concerned about an impending war for control of the canal. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Current Events around the Panama Canal March 5, 2025. the Associated Press. Sabrina Valle, Suzanne McGee, and Michael Martina. March 4, 2025. Reuters. Matt Murphy, Jake Horton and Erwan Rivault. February 14, 2025. BBC. May 1, 2024. World Weather Attribution. World Maritime News Staff. March 15, 2019. World Maritime News. July 29, 2018. Reuters. Panama Canal Treaty of 1977 U.S. Department of State. The Chinese “Belt and Road Initiative” Michele Ruta. March 29, 2018. World Bank Group. The Trump-Gaza Video February 26, 2025. Sky News. Laws Audio Sources Senate Committee on Commerce, Science, and Transportation January 28, 2025 Witnesses: Louis E. Sola, Chairman, Federal Maritime Commission (FMC) Daniel B. Maffei, Commissioner, FMC , Professor, Scalia Law School, George Mason University Joseph Kramek, President & CEO, World Shipping Council Clips 17:30 Sen. Ted Cruz (R-TX): Between the American construction of the Panama Canal, the French effort to build an isthmus canal, and America's triumphant completion of that canal, the major infrastructure projects across Panama cost more than 35,000 lives. For the final decade of work on the Panama Canal, the United States spent nearly $400 million, equivalent to more than $15 billion today. The Panama Canal proved a truly invaluable asset, sparing both cargo ships and warships the long journey around South America. When President Carter gave it away to Panama, Americans were puzzled, confused, and many outraged. With the passage of time, many have lost sight of the canal's importance, both to national security and to the US economy. 18:45 Sen. Ted Cruz (R-TX): But 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. 19:10 Sen. Ted Cruz (R-TX): President Trump has highlighted two key issues. Number one, the danger of China exploiting or blocking passage through the canal, and number two, the exorbitant costs for transit. 19:20 Sen. Ted Cruz (R-TX): Chinese companies are right now building a bridge across the canal at a slow pace, so as to take nearly a decade. And Chinese companies control container points 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, I believe, poses acute risks to US national security. 19:50 Sen. Ted Cruz (R-TX): 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. American tourists aboard cruises, particularly those in the Caribbean Sea, are essentially captive to any fees Panama chooses to levy for canal transits, and they have paid unfair prices for fuel bunkering at terminals in Panama as a result of government granted monopoly. Panama's government relies on these exploitative fees. Nearly 1/10 of its budget is paid for with canal profit