An internal memo from House Republicans encourages lawmakers to support President Donald Trump’s effort to take back the Panama Canal.
The bullet-pointed memo, called “Panama Canal,” was circulated by House GOP Policy Committee Chairman Kevin Hern (R-OK).
“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,” the memo, obtained by Fox News, says.
Panama was given control of the canal under the late former President Jimmy Carter, the memo explains. The treaties establishing this transition “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 canal “currently contributes to 7.7% of Panama’s GDP,” the memo notes, emphasizing that the United States is “Panama’s largest provider of foreign direct investment—$3.8 billion annually.”
“Chinese companies now operate ports at both ends of the canal,” the memo explains. “Chinese construction companies in 2018 funded a $1.4 billion bridge project spanning the canal.” China’s presence in the canal is “likely” a breach of the treaties, the document says.
The document goes on to state that Panama “raised transit fees significantly for ships traveling through the canal” in response to droughts. Panama further “increased transit reservation fees for 2025 from $41,000 to $50,000 for Panamax lock transits for ‘Super’ category vessels, including MR tankers. Neopanamax lock transit reservation fees will climb from $80,000 to $100,000.” President Donald Trump has called the transit fees “exorbitant.”
Under the treaties, transit fees must be “just, reasonable, equitable, and consistent with international law.” The “exorbitant” fees violate the treaties, the memo asserts.
Earlier this month, Rep. Dusty Johnson (R-SD) introduced a bill that would “authorize the President to enter into negotiations for the reacquisition of the Panama Canal from the Republic of Panama for the symbolic amount of $1.”
“President Trump is right to consider repurchasing the Panama Canal,” Johnson said in a statement. “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.”
