The head of the Federal Maritime Commission will inform a U.S. Senate committee about strategies available to counter the increasing influence of China and Chinese companies in Panama. The President has pledged U.S. action without specifying details on timing or methods to assert control over the canal, designated as an ally's sovereign territory.
Federal Maritime Commission Chair Louis E. Sola expressed in written testimony ahead of the Senate Commerce Committee hearing on the Panama Canal, "We must bolster support for American companies pursuing opportunities in Panama and the Americas to prevent Chinese firms from becoming the exclusive contract bidders." He highlighted how Chinese companies have secured significant development contracts in Panama, including projects near or involving the canal.
Senate Commerce Committee Chair Ted Cruz criticized Panama for allegedly favoring China over the U.S. in infrastructure agreements concerning the canal, built and financed by the United States. The testimony emphasizes the need to safeguard the Panama Canal Authority's independence and explore ways to counter China's expanding presence in the region.
Panama’s president, José Raúl Mulino, defended Panama's management of the canal which handles over 40% of U.S. container traffic valued at approximately $270 billion annually. Earlier visits by FMC officials to Panama underscored the importance of managing water resources to ensure smooth canal operations.