Ted Cruz Gives Legal Argument For Why U.S. Should Retake Panama Canal

Sen. Ted Cruz (R-TX) said this week that the U.S. has a legal right to retake control of the Panama Canal after the Latin American country failed to live up to the obligations it agreed to decades ago.

Cruz made the remarks this week on his “Verdict” podcast, which he co-hosted with Ben Ferguson. They discussed President Donald Trump’s push to retake the canal.

“They made a commitment, number one, 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,” Cruz said. “And number two, they made a commitment in treaty that they would charge fair and equitable fees.”

“On both ends of the Panama Canal, on the Pacific side and on the Atlantic side, China controls, Chinese corporations, control massive ports that are right there that give them access and give them the ability to observe all traffic going through the canal, and potentially to shut down all traffic going through the canal,” Cruz said. “As I mentioned, also in my opening, they are building a bridge across the canal, they are spending over a decade building that bridge.”

He noted that Panama brings in nearly $3 billion a year from fees charged to ships transiting the canal.

“75% of those transits are American ships,” he continued. “So, they are either American cargo ships, commercial ships, going across or they’re American military ships, the US Navy going across. But either way, Panama is making billions, and the testimony we heard in the hearing today is that on both of those grounds, there is a strong argument that Panama is in violation of the treaty.”

Cruz said the worst-case scenario for the U.S. in its push to retake the canal was that Panama would lower the rates that it charges the U.S., and there would be a “significant diminution in China’s control and influence over the Panama Canal.”

“That is a massive benefit, but I gotta say, after this hearing today, I’ve moved; I actually think the treaty arguments here are quite serious, and I get Panama would be horrified to give up the canal because they were given a gigantic gift from Jimmy Carter at the expense of the United States of America,” he said. “But I think the arguments that Panama is violating the treaty and has forfeited its right to the canal. I think those arguments are very serious, and I expect the administration to pursue them seriously.”