On Sunday, U.S. Secretary of State Marco Rubio issued a stern warning to Panama’s President, José Raúl Mulino, urging the country to take immediate action to curb China’s growing influence over the Panama Canal. Rubio emphasized that Washington would “take necessary measures” if Panama does not address what U.S. officials view as Beijing’s increasing control over one of the world’s most strategically important waterways.
During his discussions with Mulino in Panama City, Rubio delivered a direct message from President Donald Trump. He expressed concerns over China’s presence, particularly through a Hong Kong-based company that operates two ports near the entrances to the canal. According to U.S. officials, this presence threatens the neutrality of the canal and violates the 1977 U.S.-Panama Treaty, which governs the waterway’s operations. The U.S. has demanded that Panama act to protect its rights under this agreement.
Tammy Bruce, a spokesperson for the U.S. State Department, reiterated that Secretary Rubio made it clear that the current situation was unacceptable. She stated that without immediate changes, the U.S. would be forced to take appropriate actions to safeguard its interests, although she did not specify the exact nature of those actions.
Panama Responds with Diplomacy but Stands Firm on Sovereignty
In response, President Mulino indicated that Panama would review agreements involving Chinese businesses, including the crucial 25-year port concession held by Hong Kong-based CK Hutchison Holdings. However, Mulino was adamant that Panama’s sovereignty over the canal—a vital international waterway—was non-negotiable. While signaling openness to further cooperation with the U.S. on migration issues, Mulino made it clear that any attempts to infringe on Panama’s control over the canal would not be tolerated.
“Panama’s sovereignty over the canal is not a subject for discussion,” Mulino stated following the talks. He also expressed a willingness to review the controversial Chinese agreements, including a port lease renewal with CK Hutchison in 2021. This agreement has come under scrutiny from U.S. lawmakers who argue that it represents an example of China’s expansionist influence in Panama and could potentially undermine the neutrality of the canal.
Despite the U.S. concerns, Mulino and other Panamanian officials maintain that the ports in question are not part of the canal’s operations, which are managed by the Panama Canal Authority, an independent government agency. Furthermore, they reject claims that Panama is violating the neutrality treaty. Some experts argue that the canal’s operations remain unaffected by China’s involvement in the ports.
Trump’s Threats Over the Canal
President Trump, upon returning to office, warned that the U.S. might take more drastic action if China continues to control key parts of the canal. The Panama Canal, which was constructed by the United States in the early 20th century and handed over to Panama in 1999, has become a symbol of U.S. influence in the region. Trump has raised the possibility of using military force to reclaim control, although he has since downplayed the likelihood of needing to send troops. Instead, Trump insists that the U.S. would take “something very powerful” to address the situation.
Trump further stated, “China’s running the Panama Canal. That was not given to China; it was given to Panama—foolishly. But they violated the agreement, and we’re going to take it back.” The U.S. has accused China of using its economic power to exert control over strategic regions like Panama, which are crucial for global trade.
China’s Response and Broader U.S. Concerns
China, for its part, has denied any improper interference in the operation of the Panama Canal. Chinese Foreign Ministry spokesperson Mao Ning stated that China respects Panama’s sovereignty over the waterway and has never interfered in its management. “China recognizes the canal as a permanently neutral international waterway,” Mao remarked in response to U.S. accusations.
This ongoing tension highlights broader concerns in U.S. foreign policy regarding China’s growing influence in Latin America. Rubio’s visit to Panama is part of a larger diplomatic effort by the U.S. to counter China’s economic and political expansion in the region, which has become an increasing focal point for U.S. policymakers.
U.S.-Panama Cooperation on Migration and Security
In addition to the canal issue, Rubio’s visit underscored U.S. concerns about migration flows in the region. During his talks with Mulino, Rubio highlighted the importance of joint efforts to address the growing migrant crisis, particularly in the dangerous Darien Gap—a region that connects Colombia to Panama and has seen a sharp increase in migrants attempting to reach the U.S.
Mulino announced that Panama would be expanding a memorandum of understanding signed with the U.S. Department of Homeland Security to allow for the return of migrants from Venezuela, Colombia, and Ecuador. This agreement aims to mitigate the flow of migrants through the Darien Gap, which has become a significant transit route for people trying to reach the United States.
Rubio emphasized that migration would be a key focus of U.S. diplomacy in Central America, and officials indicated that he would use this trip to build support for U.S. deportation efforts and strengthen bilateral cooperation on migration management.
Conclusion
As tensions between the U.S. and Panama over the Panama Canal continue to escalate, both sides seem committed to maintaining a delicate balance. While President Mulino has expressed willingness to cooperate with the U.S. on issues of migration and review Chinese business dealings in Panama, he remains firm on defending his country’s sovereignty over the canal.
Meanwhile, the U.S. has made it clear that it will take the necessary measures to protect its interests, including its rights under the U.S.-Panama Treaty. The situation is likely to remain a point of contention, with broader implications for U.S.-Panama relations and geopolitical dynamics in the region.