A group of House Republicans introduced a bill to authorize the purchase of the Panama Canal. Rep. Dusty Johnson, R-S.D., and more than a dozen of his colleagues brought it forward after President-elect Donald Trump expressed interest in bringing the canal back under American ownership for national security and economic reasons.
Johnson said Trump is right to consider repurchasing the Panama Canal. The People’s Republic of China has made significant investments in canal infrastructure, and Chinese companies have managing rights for two ports on either side.
“China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe,” Johnson said in a statement.
History of the Panama Canal
The canal opened in 1914 after the United States spent a decade building it. Ships can pass through the canal in eight to ten hours, saving them an 8,000-mile journey around South America’s Drake Passage, which is one of the roughest and most dangerous crossings in the world.
More than 10,000 ships use the canal annually, including U.S. Coast Guard and military vessels. According to the State Department, 72% of the ships that pass through are either coming from or going to a U.S. port.
Some of the largest ships pay hundreds of thousands of dollars to transit. Those tolls generate billions of dollars in yearly revenue.
In 1903, the U.S. gained permanent rights to the Panama Canal Zone when former President Theodore Roosevelt signed a treaty with newly independent Panama. The canal cost $375 million to build, which was the nation’s most expensive construction project at the time. Former President Jimmy Carter gave Panama control of the canal in 1978.
