On Sunday, Secretary of State Marco Rubio informed Panamanian President José Raúl Mulino that the Central American nation must urgently limit Chinese influence in the Panama Canal region or risk facing consequences from the Trump administration. Mulino responded, insisting that “there is no real threat of retaking the canal or the use of force.”
Rubio, embarking on his first international trip as the United States’ chief diplomat, met with Mulino for direct discussions. Mulino has resisted demands from the U.S. regarding Panama’s control of the vital global trade artery.
Speaking on behalf of President Donald Trump, who has previously called for the return of the canal to U.S. control, Rubio conveyed that Trump had preliminarily concluded that China’s presence in the area violates the 1999 treaty, which transferred the canal to Panama. This treaty stipulates the waterway’s permanent neutrality.
“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the treaty,” the State Department said in a summary of the meeting.
Mulino countered, stating, “I don’t feel like there’s a real threat against the treaty and its validity.”
Rubio’s warning comes as President Trump has been ramping up pressure on U.S. allies and neighbors, including pushing for changes regarding the canal. On Saturday, Trump announced substantial tariffs on both Canada and Mexico, prompting retaliatory measures from these countries.
Mulino referred to the meeting as “good-faith” and characterized it as “respectful” and “positive,” noting that its purpose was “to clear up doubts.” While acknowledging that Washington has raised concerns about China’s involvement in managing the canal’s ports, Mulino explained that the consortium overseeing the ports is undergoing an audit, and he pledged that the Panama Canal Authority would provide Rubio with further details.
Mulino also clarified that Panama would not renew its agreement with China’s Belt and Road Initiative when the current arrangement expires.
In Panama City, approximately 200 protesters marched with national flags, chanting slogans such as “Marco Rubio out of Panama,” “Long live national sovereignty,” and “One territory, one flag,” while the meeting was ongoing. Some demonstrators burned a banner featuring images of Trump and Rubio, though riot police halted their progress before they could reach the presidential palace.
Rubio was later scheduled to visit the canal.
Mulino expressed hope that Rubio’s visit would focus on shared priorities like migration and combating drug trafficking. However, Rubio’s trip coincides with a freeze on U.S. foreign aid and halted U.S.-funded programs targeting illegal migration and crime in Central America.
Additionally, Rubio emphasized the Trump administration’s main concern—fighting illegal immigration—by urging Panama’s president to continue cooperation in this area and thanking him for accepting the return of migrants.
In a Wall Street Journal editorial on Friday, Rubio argued that mass migration, the illicit drug trade, and the hostile actions of Cuba, Nicaragua, and Venezuela have caused significant damage. He also highlighted that Chinese interests control the ports at both ends of the canal, which leaves the waterway vulnerable to influence from Beijing.
“We’re going to address that topic,” Rubio said the day before. “The president’s been pretty clear he wants to administer the canal again. Obviously, the Panamanians are not big fans of that idea. That message has been brought very clear.”
The Panama Canal, built by the United States, was transferred to Panama in 1999, and Panamanian officials strongly oppose Trump’s demand to reclaim it.
Despite Mulino’s firm rejection of any negotiations over ownership, some believe that Panama could be willing to consider a compromise, such as removing the Hong Kong-based Hutchison Ports company, which was given a 25-year, no-bid extension to run canal operations. An ongoing audit into this extension could lead to a bidding process for the rights to operate the ports.
What remains uncertain is whether Trump would find it acceptable for an American or European company to take over the concession, or whether he seeks more extensive changes than just operational control.
Rubio’s trip, which also includes visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, occurs amidst a freeze on U.S. foreign assistance. The State Department confirmed that Rubio had approved waivers for certain essential programs in these countries, but further details were not immediately provided.
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