(Julianna Frieman, Headline USA) Sen. Ted Cruz, R-Texas, made a “very serious” case for the U.S. to retake the Panama Canal during Wednesday’s episode of his podcast.
Cruz, chairman of the Senate Committee on Commerce, Science and Technology, kicked off a Senate hearing Tuesday by launching formal investigative efforts into Panama’s violation of 1977 Panama Treaty. The senator blasted Panama as a “bad actor” that fell to the dangerous influence of China.
Ted Cruz is leading the hearing on the Panama Canal. It’s absurd how much the US is charged to transit through the Panama Canal. Remember, when they increase the fees for US ships to pass through the Panama Canal, those costs are ultimately passed on to us, the consumers.
We… pic.twitter.com/rTczWqZ54F
— ❥❥❥ᗰoᒪᒪie❥❥❥ (@mollie_don) January 28, 2025
Cruz delved into the reasons for his support of President Donald Trump retaking the Panama Canal, explaining that it was more than American expansionism that caused the issue to emerge.
“This is not simply Donald Trump raising an issue, ‘Gosh, we want the Panama Canal,’” Cruz said on Verdict with Ted Cruz.
“Panama made a commitment when Jimmy Carter gave this away. And they made a commitment, No. 1, that the Panama Canal would remain neutral, that it would not allow another foreign power to have control over it, to have military access to it,” he continued. “And No. 2, they made a commitment in treaty that they would charge fair and equitable fees.”
The senator said that “China controls” both the Pacific and Atlanta sides of the Panama Canal. He warned that China has the power to “shut down all traffic” traversing the canal, which could harm U.S. interests.
“Panama makes roughly $3 billion in fees from transit across the Panama Canal,” Cruz said, adding that “75% of those transits are American ships.”
The Texan pointed out that Panama makes billions charging American cargo ships, commercial ships and military ships for using the canal.
He made clear that “there is a strong argument that Panama is in violation of the treaty.”
Cruz was optimistic about Trump’s negotiation power over Panama, saying the “worst-case scenario” would be a reduction of cost.
The Legal Basis for Retaking the Panama Canal, plus No Taxes on Tips is Happening. @benfergusonshow and I break it all down on Verdict 👇👇👇https://t.co/P86YuEAcDK
— Ted Cruz (@tedcruz) January 29, 2025
The GOP senator reflected on his hearing, telling listeners he was shocked that Democrats agreed with him on the threat of Chinese influence over the canal.
“I didn’t know if the Democrats would show up at the hearing and begin screaming and saying, ‘Trump is a lunatic and how dare he do this.’ I didn’t know what they would say,” Cruz said.
He added, “The most interesting thing about the hearing today is the Democrats, almost every Democrat, echoed the points that you and I have been making, that China has far too much influence over the Panama Canal, and also the Panama Canal is charging excessive fees. I’m not sure what that means, but it surprised me.”
Julianna Frieman is a freelance writer published by Headline USA, the Daily Caller, The Federalist, and the American Spectator. Follow her on Twitter at @JuliannaFrieman.