Panama to End China Canal Deal, Strengthen US Ties Following Rubio Visit “`
Following a meeting with Secretary of State Marco Rubio and amid concerns raised by President Donald Trump about China’s influence, Panamanian President José Raúl Mulino announced Sunday his country would terminate a key agreement with China. He stated Panama’s sovereignty over the Panama Canal will remain intact, but the 2017 memorandum of understanding to participate in China’s Belt and Road Initiative will not be renewed. Panama will instead focus on strengthening its ties with the United States.
Mulino expressed optimism about enhanced U.S.-Panama relations and increased U.S. investment in Panama following Rubio’s visit. Rubio, on his first international trip since his confirmation, indicated his team is committed to advancing the U.S. agenda.
“I think this visit opens the door to build new relations … and try to increase as much as possible U.S. investments in Panama,” Mulino told reporters.
In a social media post, Rubio stated his team is ready to push the U.S. agenda, emphasizing the importance of preventing further Chinese influence over the canal area. He also posted about meeting the U.S. Embassy team in Panama.
President Trump previously voiced concerns about alleged Chinese control over the canal and exorbitant fees levied on U.S. ships. While the canal, completed in 1914 by the U.S., was transferred to Panama during the Carter administration, the current administration has prioritized regaining influence over the waterway.
Rep. Dusty Johnson introduced the Panama Canal Repurchase Act, aiming to authorize the U.S. president to negotiate the repurchase of the canal from Panama. Johnson cited China’s growing influence in the region as a reason for the proposed action.
The bill would empower the president, in conjunction with the secretary of state, to negotiate the repurchase of the Panama Canal. The U.S. State Department estimates that approximately 72% of vessels traversing the canal are bound for or originating from U.S. ports.
Johnson’s office highlighted the canal’s strategic importance to the U.S., emphasizing its use by the U.S. Coast Guard and Department of Defense. The office also noted the significant economic benefits derived from the canal’s tolls and the significant increase in travel time if ships were forced to circumnavigate South America.
Beyond the canal issue, Rubio’s visit also encompassed discussions on addressing mass migration in the hemisphere and ensuring fair competition for U.S. businesses.
The State Department did not immediately respond to a request for comment.
Digital’s Danielle Wallace contributed to this report.