PolicyBrief
S.RES. 54
119th CongressFeb 4th 2025
A resolution expressing the vital importance of the Panama Canal to the United States.
IN COMMITTEE

This resolution recognizes the Panama Canal's vital importance to the U.S., expresses concern over growing Chinese influence in its operations, and urges the administration to safeguard U.S. interests and enforce the Canal's neutrality.

Mike Lee
R

Mike Lee

Senator

UT

LEGISLATION

Panama Canal Under Chinese Influence? New Resolution Flags Risks, Urges Action

This resolution is all about the Panama Canal – that crucial waterway connecting the Atlantic and Pacific. It basically sounds the alarm about China's growing influence there and urges the U.S. government to step in. The core message? Protecting American interests and keeping the canal neutral.

Canal Check: What's Changing?

The resolution highlights a few key things:

  • History Reminder: It reminds everyone that the U.S. built the canal (spending $375,000,000 and, tragically, losing 10,000 lives in the process, back in 1904-1914).
  • Strategic Importance: The canal is vital for U.S. trade and moving military assets quickly.
  • China's Moves: China's been investing heavily. We're talking a $900,000,000 deal for Margarita Island, $1,400,000,000 for a new bridge across the canal, and a Hong Kong company already runs two of the canal's ports.

Real-World Ripple Effects

Let's break down what this could mean for everyday folks:

  • Shipping Slowdowns/Cost Increases: Imagine a major highway suddenly having toll hikes or unexpected delays. If China's influence translates to control over canal operations, U.S. businesses (and therefore consumers) could face higher shipping costs or slower delivery times for goods moving between the East and West Coasts. Think everything from electronics manufactured overseas to agricultural products shipped across the country.
  • National Security Concerns: The resolution paints a picture where China could use its position for intelligence gathering, or even gain a military foothold. This could impact how quickly the U.S. military can respond to global events. For example, if a conflict arises, the U.S. might find it harder to move ships and resources through the canal if China has significant sway over its operations.
  • Job Impacts (Indirect): While the resolution doesn't directly address jobs, major shifts in trade routes or military logistics could have ripple effects. For instance, if U.S. ports see reduced traffic due to canal issues, that could impact dockworkers, truckers, and related industries.

Treaty Troubles and Challenges

The resolution pushes the Trump administration to see these Chinese investments as a possible violation of the Neutrality Treaty. That treaty, from 1977, gave Panama control but let the U.S. defend the canal's neutrality. The big challenge? Defining 'neutrality.' Does heavy Chinese investment count as a threat to that neutrality? That's the core question, and it could lead to some tense negotiations.

This also ties into existing U.S.-China trade tensions. The resolution adds another layer of complexity to an already strained relationship. It is important to note that the resolution does not mention any specific countermeasures, meaning that the call to "address" the investments could lead to a variety of actions, some of which could have unintended consequences.