EXCLUSIVE: House Republican leadership is encouraging lawmakers to back up President Donald Trump’s desire to return the Panama Canal to U.S. ownership, a new memo suggests.
The House GOP Policy Committee, led by Chairman Kevin Hern, R-Okla., the No. 5 House Republican leader, sent the document to legislative directors across the conference on Wednesday.
The two-page memo, simply titled “Panama Canal,” begins by highlighting Trump’s past comments about China’s influence over the Panama Canal and his goal of “taking it back.”
It also noted that Secretary of State Marco Rubio will be visiting Panama on his first trip as Trump’s top diplomat.
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The next section details the history of the U.S. and the Panama Canal: “The Panama Canal was built by the U.S. between 1904 and 1914. The canal was leased to the U.S. for nearly 75 years under the Hay–Bunau-Varilla Treaty of 1903 which established the Panama Canal Zone and the subsequent construction of the Panama Canal.”
It also points out that it was under the late former President Jimmy Carter that Panama was given control of the canal, via treaties later criticized by Trump.
The treaties with Carter “gave the U.S. the permanent explicit right to intervene to keep the canal open in the event of any threat that may interfere with the canal’s continued neutral service to ships from all nations,” the memo said before laying out arguments for why Republicans believe Panama has since violated its end of the deal.
“About 5% of global maritime traffic passes through the Panama Canal, saving 6,835 miles off a journey that would otherwise require a long and dangerous trip skirting the southern tip of South America,” the memo states. “The United States is Panama’s largest provider of foreign direct investment—$3.8 billion annually.”
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Meanwhile, “Chinese companies now operate ports at both ends of the canal. Chinese construction companies in 2018 funded a $1.4 billion bridge project spanning the canal,” it reads.
“The treaties require that transit fees be ‘just, reasonable, equitable, and consistent with international law,”’ and that Panama maintain the canal’s permanent neutrality,” the memo said. “The high fees charged by Panama as well as Panama’s openness to investment by the Chinese Communist Party in the canal zone are likely both in breach of the terms of the treaties.”
Congress has already granted the president wide authority over international commerce in the event of an emergency, but GOP lawmakers have signaled they want to ease those guardrails further.
Main Street Caucus Chairman Dusty Johnson, R-S.D., introduced a bill earlier this month to let Trump re-purchase the Panama Canal for the U.S.
A short while later, freshman Rep. Riley Moore, R-W.Va., unveiled legislation to widen Trump’s non-emergency tariff power.
And Rep. Andy Ogles, R-Tenn., has a bill to authorize Trump to enter into negotiations to buy Greenland.
The memo from Hern’s policy committee is notable, however, as an apparent subtle marching order to the House GOP conference to continue down that path.
It could also likely embolden Republican lawmakers to find legislative avenues to further back up Trump’s push to purchase the canal, particularly given the Panamanian government’s opposition to the U.S. president’s plan.
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