Panama is inching closer to China, Trump's new Federal Maritime Commission head Louis Sola tells CNBC, and 'all options on the table' to defend U.S. business.
Louis Sola, President Donald Trump 's newly appointed head of the Federal Maritime Commission, said no-bid contracts give China an unfair advantage at the Panama Canal and nearby ports, and reports that Chinese companies are getting canal tolls refunded are "alarming."
In his first interview since being appointed by Trump to the administration's top maritime role, the FMC chairman told CNBC that the U.S. government wants every business worldwide to compete on a level playing field for Panama Canal and Panama ports business, including China, but the FMC is concerned that is not happening.
"After not paying for 20 years, they renewed the contract and pay $7 million a year for both ports. These assets are definitely worth $5 billion to $7 billion, so the people of Panama are not getting anything for these two ports to be operating there," Sola said.over the Panama Canal, accusing Panama of charging excessive rates.
Sola was referring to the FMC's ability to issue substantial fines to a foreign government and prohibit the entrance of foreign flag vessels at U.S. ports when the FMC finds laws or practices harmful to U.S. shipping under the Merchant Marine Act of 1920. Corruption remains the biggest problem in Panama, according to Sola, and it is an issue the Trump administration and Congress need to revisit.
"The President of Panama did impress me as we were waiting in his office to meet with him, myself, with our official delegation, and he was 30 minutes late because the election in Venezuela happened the day before, and he was breaking relations with Venezuela. So he seems to be a pro-U.S. person."
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