US Secretary of State Marco Rubio warned Panama's President that Washington will take measures if Panama doesn't end what President Trump sees as China's influence over the Panama Canal. Mulino signaled willingness to review agreements involving China but maintained Panama's sovereignty over the waterway.
US Secretary of State Marco Rubio gestures after being welcomed by Panama 's Foreign Minister Javier Martinez-Acha upon his arrival at the presidential palace in Panama City, Panama on Feb 2, 2025.
"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," Bruce said.Upon returning to office, Trump threatened to take control of the Panama Canal, built by the United States in the early 20th century and handed over to Panama in 1999, claiming the canal is being operated by Beijing.
Mulino said his meeting with Rubio was respectful and cordial. He showed willingness to review some Chinese businesses in Panama, including a key 25-year concession to Hong Kong-based CK Hutchison Holdings, renewed in 2021 for the operation of ports at both entrances of the canal, pending the results of an audit.
A broad agreement between Panama and China to contribute to China's Belt and Road initiative, under which the Asian country expanded investment in Panama during previous administrations, will not be renewed, Mulino said."I do not feel that there is any real threat at this time against the treaty, its validity, and much less the use of military force to make the treaty," Mulino said, adding that it will be important to have face-to-face talks with Trump.
Rubio is touring Central America and the Caribbean on his first foray in the post as he seeks to refocus US diplomacy on the Western Hemisphere — in part to recruit help in stemming migration toward the US southern border.
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