In Panama City on February 2nd, U.S. Secretary of State Marco Rubio cautioned President Jose Raul Mulino that if Panama does not act swiftly to diminish what he perceives as China's grip on the Panama Canal, the U.S. will need to "take necessary measures."
Following their discussions, Mulino indicated a willingness to reassess agreements with China and Chinese companies, while affirming Panama's control over the canal's operations. Rubio conveyed Trump's concerns regarding China's involvement near the canal and emphasized the need for immediate changes to protect U.S. treaty rights.
Although the exact actions Panama must take remain unspecified, Trump's previous threats to seize control of the canal over alleged Chinese influence have drawn criticism. Rubio highlighted the strategic importance of the canal to U.S. interests, underscoring the potential risks posed by Chinese involvement in the region.
Mulino, during a respectful meeting with Rubio, agreed to review certain Chinese ventures in Panama, including a significant port concession to HK-based CK Hutchison Holdings. The contract, a focal point for U.S. scrutiny, is seen as indicative of China's expanding presence in Panama, raising concerns about treaty obligations.
Mulino's government plans to evaluate early termination of agreements tied to China's Belt and Road initiative, signaling a shift away from Chinese investment. Noting the canal's significance and neutrality under international law, Mulino expressed readiness for dialogue with Trump to address concerns harmoniously.
During Rubio's visit to the Miraflores Locks, a vital part of the canal's operations, China reiterated its respect for Panama's sovereignty and commitment to the canal's neutral status, refuting U.S. allegations of interference.
Rubio's trip to solidify U.S. ties in the Western Hemisphere, particularly on migration and regional influence, aligns with efforts to counter China's expanding role in Latin America. Collaborative efforts with Panama on migration issues, including potential U.S.-funded repatriation efforts, reflect U.S. strategy to manage migration flows in the region more effectively.