US Secretary of State Marco Rubio has warned Panama to reduce Chinese influence over the Panama Canal area, threatening retaliatory action from the Trump administration. Rubio conveyed this message to Panamanian President Jose Raul Mulino during face-to-face talks on Sunday. During his meeting, Rubio stressed that the current situation is “unacceptable”.
According to the State Department, Rubio made it clear that “absent immediate changes, it would require the United States to take measures necessary to protect its rights under the treaty”. The treaty signed in 1999 calls for the permanent neutrality of the American-built canal.
Meanwhile, Mulino responded by saying that Rubio made “no real threat of retaking the canal or the use of force”. He described the talks as “respectful” and “positive”, acknowledging concerns over China’s role in the ports at either end of the canal.
Rubio’s visit comes amid growing tensions between the US and Panama over the canal’s management.
US President Donald Trump has demanded that the canal be returned to US control, citing concerns over Chinese influence.
Notably, the Panama Canal is a vital waterway for global trade, and the US has long been concerned about China’s growing presence in the region. Rubio’s warning to Panama marks a major escalation in tensions between the two nations.
In related news, Panama has announced that it will not renew its agreement with China’s Belt and Road Initiative when it expires. The initiative has been criticised for leaving poor member countries heavily indebted to China.
In the meantime, Rubio’s trip to Panama is part of a broader tour of Central America, which includes visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic.
Surprisingly, the US Secretary of State’s trip comes amid a freeze on US foreign assistance, with Rubio approving waivers for certain critical programs in the countries he is visiting.