Panama to End Key Canal Deal with China Following Rubio's Warning

Extended summary

Published: 04.02.2025

Introduction

During a recent visit to Panama, U.S. Secretary of State Marco Rubio conveyed a strong message to Panamanian President José Raúl Mulino regarding the influence of China in the Panama Canal region. This visit marks Rubio's first international trip as Secretary of State and comes amid heightened tensions surrounding U.S.-China relations and concerns over Chinese investments in strategic areas. The discussions included potential U.S. actions if Panama does not address Chinese involvement in the canal, which is crucial for global trade.

U.S. Concerns Over Chinese Influence

Rubio's meeting with Mulino focused on the significant presence of China in the Panama Canal area, which President Donald Trump perceives as a violation of the treaty that transferred control of the canal to Panama in 1999. This treaty stipulates the canal's permanent neutrality, and Rubio emphasized that the current situation is "unacceptable." The U.S. State Department's summary of the meeting indicated that without immediate changes, the U.S. would consider necessary measures to protect its treaty rights. However, Mulino downplayed the discussions, stating that he did not feel there was a real threat to the treaty's validity.

Panama's Response and Future Plans

In response to the U.S. pressure, Mulino announced that Panama would not renew its agreement with China's Belt and Road Initiative upon its expiration. This initiative has drawn criticism for potentially leading to significant debt for participating countries. The decision indicates a shift in Panama's foreign relations, particularly after it previously recognized Beijing over Taiwan. Additionally, during Rubio's visit, he toured the canal and engaged with local officials, reaffirming Panama's commitment to managing the waterway independently while remaining open to all nations.

Domestic Reactions and Protests

While Rubio was in meetings with government officials, protests erupted in Panama City, where around 200 demonstrators expressed their opposition to U.S. intervention and called for national sovereignty. The protesters carried flags and chanted slogans against Rubio, highlighting the local sentiment towards perceived foreign influence in domestic affairs. Some demonstrators even burned banners depicting Trump and Rubio, reflecting the tension between U.S. diplomatic efforts and local public opinion.

Broader Context of U.S. Foreign Policy

Rubio's discussions in Panama also included topics such as illegal immigration, a key focus of the Trump administration. He thanked Mulino for Panama's cooperation in repatriating migrants. However, the context of these discussions is complicated by a freeze on U.S. foreign aid, which has impacted programs aimed at addressing migration and crime in Central America. Rubio's broader itinerary includes visits to other Central American countries, emphasizing a regional approach to U.S. foreign policy amidst ongoing challenges.

Conclusion

The recent visit by Secretary of State Marco Rubio underscores the complicated dynamics between the U.S., Panama, and China, particularly concerning the Panama Canal. The U.S. is clearly signaling its intent to reduce Chinese influence in the region, which could lead to significant shifts in Panama's foreign relations and domestic policies. As the situation evolves, the outcomes of these diplomatic engagements may reflect broader trends in U.S. foreign policy and its approach to strategic partnerships in Central America.

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