Panama Canal Expansion Mandates U.S. Port Improvement, Says Panamanian President
The U.S. must increase the dredging capability of East Coast ports, creating depths of at least 50 feet, in order to maximize the shipping capacity of vessels that will fit in an expanded Panama Canal, said Panamanian President Ricardo Martinelli in remarks to reporters, according to a White House release. The remarks came as Vice President Joe Biden, along with an entourage of U.S. political figures, convened with Martinelli in Panama City on Nov. 19.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
“It is imperative and necessary that the ports on the East Coast of the United States increase the dredging capability of their ports and go to at least 50 feet depth in order to take advantage of the new sizes of ships -- the post-Panamax ships that will be able to transit the Panama Canal with the expansion,” said Martinelli. “For that purpose, it’s necessary for the East Coast ports in the United States to increase their depth to 50 feet. This will bring a number of benefits not only for Panama and for the world economy, but also for the enormous amount of jobs and other opportunities that will be created in an enormous number of ports in the United States.” The Panama Canal Authority (ACP) determines necessary sizes of ships to pass through the canal, labeling the Panamax, Panamax Plus and New Panamax (here). The ACP estimates the 2015 canal expansion opening will double cargo volume by 2025, boosting U.S. export competitiveness by reducing shipping costs, said a White House Fact Sheet said on Nov. 19 (here).
The canal expansion is a “consequential investment in the future of the United States of America,” said Biden, according to the release. “It protects Panama’s unique place in the world economy as a new generation of massive container ships and tankers hits the high seas. You're moving from the ability to accommodate a ship that's 106 feet wide to a ship that's 160 feet wide, doubling the commerce. And it’s an incredible consequence to this global economy.” Congress is poised to go to conference on the House Water Resources Reform and Development Act (WRRDA) of 2013, H.R. 3080 (here), and Senate Water Resources Development Act, S. 601 (here), after House passage in October (see 13102428). The legislation aims to improve U.S. waterway infrastructure, including ports.
The U.S.-Panama free trade agreement that took effect in 2012 is also cementing the U.S. status as Panama’s primary trading partner, said the White House. The U.S.-Panama Trade Promotion Agreement (TPA) is building on the U.S. status as Panama’s largest trading partner, representing roughly 23 percent of all Panamanian trade, the White House Fact Sheet said. “Trade between the United States and Panama has already grown in one year by 18 percent,” said Biden, according to the release.
Email ITTNews@warren-news.com for a copy of the White House release.