U.S. Secretary of State Marco Rubio warned Panamanian President José Raúl Mulino on Sunday that America would take necessary measures over Chinese influence of the Panama Canal.
Why It Matters
Rubio headed to Panama on Saturday as part of his first overseas trip. Rubio's decision to prioritize Latin America over the traditional first stops in Europe or Asia signals the White House's intent to refocus foreign policy, homing in on the region as immigration remains at the forefront of President Donald Trump's agenda.
Panama is a significant starting point for Rubio's Latin American tour given the Trump administration's claims that the Panama Canal is controlled by China, despite Mulio's reassurance that China does not influence the canal's administration.
Trump has repeatedly suggested that the U.S. take back control of the Panama Canal that was given to the Latin American country in 1999 thanks to two treaties signed by former President Jimmy Carter in 1977. One of those agreements was called the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal or the Neutrality Treaty. This treaty also guaranteed that all countries had fair access to the Panama Canal with nondiscriminatory tolls.
What To Know
In December 2024, Trump suggested that the U.S. could regain control of the canal from the Panamanian government if something is not done to curb the "exorbitant" shipping costs required for using the waterway. At the time, Mulino said in a statement, "Every square meter of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be."
According to a statement from State Department spokesperson Tammy Bruce, Rubio told Mulino and Foreign Minister Javier Martínez-Acha in a meeting on Saturday that Trump "has made a preliminary determination that the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal and represents a violation" of the Neutrality Treaty.
The statement continued: "Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty."
The statement also said that Rubio talked about the "importance of collaborative efforts to end the hemisphere's illegal migration crisis" and thanked Mulino for his support of a program that started under the Joe Biden administration that seeks to remove Panama nationals from the U.S. and repatriate them.
What Are China's Ties to the Panama Canal?
Panama is currently involved with China's Belt and Road Initiative (BRI), which funds infrastructure projects around the globe. Critics say the initiative leaves poor countries who accept the funding heavily indebted to Beijing. Mulino said Panama would not be renewing its agreement with the BRI once it expires, according to the Associated Press (AP).
A subsidiary of the Hong Kong-based company Hutchison Ports controls operations at two ports on either end of the Panama Canal. It is currently in a 25-year no-bid to run the ports. Mulino said the consortium controlling the ports and the suitability of its no-bid extension were being audited, the AP reports.
What People Are Saying
Panamanian President José Raúl Mulino told reporters on Sunday, per the AP, that Rubio made "no real threat of retaking the canal or the use of force."
Mulino called his meeting with Rubio "respectful" and "positive," the AP reported. The Panamanian president also said he did not "feel like there's a real threat against the treaty and its validity."
Chinese Foreign Ministry spokesperson Mao Ning said late last month: "China has not participated in the management and operation of the canal, has never interfered in the canal's affairs, has always respected Panama's sovereignty over the canal, and recognizes the canal as a permanently neutral international waterway."
What Happens Next
Rubio's itinerary also includes visits to El Salvador, Costa Rica, Guatemala and the Dominican Republic. His trip is expected to focus on mass migration, drug cartels and policies from Cuba, Nicaragua and Venezuela as ongoing threats to stability, Rubio wrote in an op-ed for The Wall Street Journal published Friday.
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About the writer
Rachel Dobkin is a Newsweek reporter based in New York. Her focus is reporting on politics. Rachel joined Newsweek in ... Read more