In a surprise move, Panama’s president, José Raúl Mulino, has vowed to end a key development deal with China after meeting with Secretary of State Marco Rubio.
This comes after President Donald Trump expressed concerns that Panama had given China too much control over the critical Panama Canal.
What’s at Stake?
The Panama Canal is a 51-mile waterway that connects the Pacific Ocean and the Caribbean Sea, and it’s a vital trade route for the United States.
In fact, the U.S. Department of State estimates that around 72% of all vessels that travel through the canal are coming from or going to a U.S. port.
The canal is so important that the U.S. built it over several decades and completed it in 1914, before handing it over to Panama during the Carter administration.
A New Era for US-Panama Relations
Mulino has assured that Panama’s sovereignty over the canal will remain unchanged, but the country will not renew a 2017 memorandum of understanding to join China’s Belt and Road global development initiative.
Instead, Panama will look to work more closely with the United States.
“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 said after meeting with Rubio.
Rubio’s Visit Sparks Hope for US Investments
Rubio, who was on his first international trip since being confirmed as Secretary of State, said his team is ready to push the U.S. agenda.
“Had the pleasure of meeting the incredible @USEmbPAN team during my first embassy meet and greet in my new role as Secretary of State!” he wrote on social media.
Rubio also warned that “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.”
Trump’s Priority: Regaining Control of the Panama Canal
President Trump has made regaining ownership of the Panama Canal a priority in his administration.
In fact, House Republicans have introduced a bill to repurchase the canal, citing concerns that China’s control over the waterway poses a threat to U.S. national security.
The bill, named the Panama Canal Repurchase Act, was introduced by Rep. Dusty Johnson, who said, “President Trump is right to consider repurchasing the Panama Canal.
China’s interest in and presence around the canal is a cause for concern.”
What’s Next?
If the bill becomes law, it would give the president the authority to negotiate with Panama to reacquire the canal. This could be a game-changer for U.S. trade and national security.
As Johnson’s office noted, “More than 10,000 ships use the Panama Canal each year, generating billions of dollars of tolls which would economically benefit America.”
With Panama ditching its deal with China, it’s clear that the United States is taking a stronger stance on protecting its interests in the region. Stay tuned for more updates on this developing story!