The United States has various options to reduce Chinese influence in Panama and counter the growing presence of Chinese companies in this Central American nation. These will be presented to the Senate committee by the head of the Federal Maritime Commission.
This was reported by RBC-Ukraine citing Reuters.
Western media noted that U.S. President Donald Trump promised that the country would regain control over the Panama Canal. However, the president did not provide details on how and when he plans to implement this.
Meanwhile, Reuters reviewed written testimony from the chair of the U.S. Federal Maritime Commission, Louis Sola, which will be presented on Tuesday at the Senate Committee's hearing on the Panama Canal.
"We need to increase support for American companies looking to do business in Panama and throughout the Americas. Chinese companies should not be the only players in the trade," his statement reads.
Sola also added that Chinese companies "have managed to secure billions of dollars in contracts for development in Panama," with a significant number of these being "physical infrastructure projects, some of which are located on or near the Panama Canal."
As stated before the hearings by Senate Commerce Committee Chairman Ted Cruz, the States "paid for and built the Panama Canal, but Panama is treating America unfairly and transferring control of key infrastructure to China."
Sola also noted that the U.S. has options for "addressing the issue of the growing presence of China and Chinese companies in Panama and throughout the Americas."
"We are not without options regarding the future viability of the Canal," he said.
The chair of the U.S. Federal Maritime Commission also emphasized the importance of protecting the independence of the Panama Canal Authority.
As reported by Reuters, in August of last year, Sola and then-chair of the U.S. Federal Maritime Commission Dan Maffei visited Panama and met with the president of the country, José Raúl Mulino. This occurred after drought conditions severely impacted the operation of the canal.
In the written testimony to be presented to the Senate committee on Tuesday, Maffei will state that last year's rainy season in Panama fortunately alleviated acute water supply issues "for the time being and restored normal transit volume."
Recall that Donald Trump previously made several statements about the intention to regain U.S. control over the Panama Canal. He also, in particular, did not rule out the possible use of military force for this purpose.
More than 40% of U.S. container shipments pass through the Panama Canal, which is estimated to be about $270 billion a year.
Trump's remarks about the Panama Canal have drawn criticism from Latin American countries in the Americas and some other nations.
Last week, Panama's President José Raúl Mulino stated that the country manages the canal, which is crucial for global trade, including with the United States. Mulino emphasized that the canal "is and will remain Panamanian."
Additionally, on January 23, it became known that U.S. Secretary of State Marco Rubio plans to visit Panama amid Trump's statements about the "return" of the canal.
Note: The United States built the Panama Canal in the early 1900s to assist commercial and military ships traveling between their coasts.
In 1999, the States relinquished ownership of the waterway, more than 20 years after then-President Jimmy Carter signed the relevant agreement with Panama.