Secretary of State Marco Rubio arrived in Panama yesterday with a high-profile task: to reclaim the Panama Canal, the U.S.-constructed waterway that President Donald Trump has repeatedly expressed regret over relinquishing to Panama 25 years ago.
The bold proposal, which Panamanian President José Raúl Mulino dismissed as “impossible” and was widely condemned by regional leaders as a throwback to 19th-century imperialism, is widely interpreted as an opening negotiation tactic. The U.S. may seek lower transit fees for goods moving through the canal or enhanced cooperation on migration issues in return. However, Trump has been unwavering in his position, declaring during his inaugural address, “we’re taking it back,” and Rubio is sticking to the same line. “The president’s been pretty clear he wants to administer the canal again,” Rubio told podcaster Megyn Kelly on Thursday.
This move marks the beginning of Rubio’s first official trip as secretary of state, which will include visits to several Central American countries, including El Salvador, Guatemala, the Dominican Republic, and Costa Rica. The choice of destinations is unusual, as secretaries of state usually visit countries in Asia or Europe first. Rubio’s itinerary highlights his interest in the region, being the first Hispanic diplomat to hold the role, and reflects the Trump administration’s focus on reorienting U.S. foreign policy closer to the Western Hemisphere.
However, the bold call for regaining control of the canal comes with significant risks. Trump’s open consideration of military action to take back the canal has stirred anger among Latin American leaders, who remain cautious of U.S. historical interventions in the region, including military occupations and CIA-led overthrows during the 20th century. Gaining the support of regional leaders is crucial for the Trump administration’s broader goals, such as countering China’s influence in the Western Hemisphere and tackling migration issues, including securing cooperation for deportation flights of undocumented individuals from the U.S.
Although Mulino, the head of Panama’s pro-U.S. government, has tried to downplay tensions with the Trump administration, he has made it clear that giving up control of the canal is not an option. “I can’t negotiate,” Mulino remarked recently. “That is done. The canal belongs to Panama.”
The United States built the canal in the early 20th century, an engineering marvel that provided a vital route for military and commercial vessels. The U.S. handed control of the canal over to Panama in 1999 under an agreement signed years earlier by President Jimmy Carter—an arrangement that Trump has consistently criticized. “Giving the Panama Canal to Panama was a very big mistake,” Trump said before Carter’s state funeral. “We lost 38,000 people. It cost us the equivalent of a trillion dollars, maybe more.”
Trump has also claimed that Panama has allowed China to station troops on the canal, a false assertion, although a Hong Kong-based company, CK Hutchison Holdings, has managed two seaports at the canal for several decades. Rubio’s Latin America envoy, Mauricio Claver-Carone, has indicated that the growing influence of Chinese companies in the Canal Zone will be a key topic during the visit.
Additionally, Trump has accused Panama of imposing higher fees on U.S. vessels passing through the canal—a claim that Panama’s canal authority has denied. Rubio has indicated that the issue of fees will be central to the negotiations. “We should be getting a discount or maybe for free, because we paid for the thing,” he said.
María Fernanda Bozmoski, a Central America expert at the Atlantic Council, predicted that Panama would make it clear that it will not entertain the idea of relinquishing sovereignty over the canal. She also emphasized that Panama would seek to “set the record straight that China doesn’t actually control the canal.”
For the United States, a successful outcome in the negotiations could result in Panama agreeing to back the Trump administration’s immigration policies, impose limits on Chinese investments, and offer preferential treatment for U.S. vessels transiting the canal, according to Shannon O’Neil, a Latin America expert at the Council on Foreign Relations. O’Neil also noted that migration will be a critical issue throughout Rubio’s trip, particularly securing cooperation from countries to accept deportees from other nations.
{Matzav.com}