Sec State Rubio Tells Panama to Halt Chinese Influence Over the Canal or Face Consequences

Panama faces a critical decision: scale back China’s role in key canal ports or risk fallout from President Trump’s administration. U.S. officials say the current arrangement breaks a treaty requiring the waterway to stay neutral.

Key Facts:

  • U.S. Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino on Sunday.
  • President Trump contends China’s presence in the canal area violates a 1999 treaty requiring the waterway’s neutrality.
  • Mulino denies feeling threatened by Washington’s warnings but acknowledges the U.S. demand.
  • A Hong Kong-based company controls key ports at both ends of the canal under a 25-year extension.
  • Panama has decided not to renew its deal with China’s Belt and Road Initiative when it expires.

The Rest of The Story:

Rubio clearly relayed President Trump’s stance that China’s involvement compromises the canal’s neutral status.

Mulino, describing the exchange as “respectful,” admitted that China’s role remains a point of tension with the United States.

An audit of the consortium that manages the ports is in progress, leaving open the possibility of a change in operators.

Discussions also covered migration.

The U.S. wants Panama’s help returning migrants, though a freeze in American foreign aid has paused some programs that address crime and illicit immigration in Central America.

How Panama balances these demands with its own interests will likely shape future relations with Washington.

Commentary:

Panama stands at a critical juncture.

By allowing a Chinese company to control its main port facilities, it has run afoul of the canal treaty’s requirements.

The U.S. administration believes this arrangement jeopardizes the waterway’s neutrality and vital American interests.

With President Trump’s firm line, Panama can meet these terms or face consequences.

That means removing foreign influence and ensuring U.S. shipping is treated equitably.

Such a move would align with the original goals of the treaty and prevent any question of outside interference.

It also sends a message that longstanding agreements matter.

The canal has too great a strategic value for the U.S. to leave its status in doubt.

Standing firm with the President’s approach reinforces the principle that neutral waters must remain truly neutral.

The Bottom Line:

Panama has a decision to make: respect its treaty obligations by reducing China’s presence or face the repercussions of defying U.S. demands.

The canal remains critical for global trade, and any major shift in control could reshape the region’s balance of power.

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