US Secretary of State Marco Rubio warned Panamanian President Jose Raul Mullen on Sunday that Washington would "take necessary measures" if Panama did not immediately take steps to end what President Donald Trump sees as Chinese influence and control over the Panama Canal.
After talks with top US diplomats in Panama City, Mullino indicated that he would review agreements involving China and Chinese companies and announced further cooperation with the US on migration, but reiterated that his country's sovereignty over the world's second busiest waterway was not up for discussion, according to Reuters.
Rubio conveyed Trump's message that China's presence - through a Hong Kong company that operates two ports near the entrance to the canal - is a threat to the waterway and a violation of the U.S.-Panama treaty, State Department spokeswoman Tammy Bruce said in a statement.
"Secretary of State Rubio has made it clear that this situation is unacceptable and that, if the situation does not change immediately, the United States will take the necessary measures to protect its rights under the Agreement," Bruce said.
Rubio did not specify exactly what steps Panama must take or what American reprisals would be.
Upon returning to office, Trump threatened to take control of the Panama Canal, which the United States built in the early 20th century and handed over to Panama in 1999, claiming that the canal was operated by Beijing.
He refused to rule out the possibility of using military force in Panama, which drew criticism from both allies and opponents of the United States in Latin America. On Sunday, however, Trump said he did not believe it would be necessary to send troops, but accused Panama of violating the agreement and announced that the United States would take control of the canal, according to Reuters.
"China operates the Panama Canal. That canal was not given to China, it was given to Panama – which was stupid – but they broke the agreement and we will take it back, or something very powerful will happen," Trump told reporters.
"I don't think troops will be needed in Panama," he added.
Rubio, who was known as a harsh critic of China during his Senate career, said last week on Sirius XM radio that China could use the ports to block the canal, which is crucial to American trade, in the event of a conflict between Beijing and Washington.
Mulino said the meeting with Rubio was "respectful and cordial." He indicated a willingness to review some Chinese deals in Panama, including a key 25-year concession by Hong Kong-based CK Hutchison Holdings, renewed in 2021, to operate ports at both entrances to the canal, noting that a final decision would be made after the review.
The deal has come under criticism from US lawmakers and the government, who see it as an example of Chinese expansion in Panama, arguing that it violates a neutrality agreement the two countries signed in 1977.
The Panamanian government and some experts reject these claims, stressing that the ports are not part of the operations of the canal, which is managed by the Autonomous Authority of the Panama Canal, a government agency of Panama.
Mulino also announced that a broad agreement between Panama and China under China's "Belt and Road" initiative, which has allowed for greater Chinese investment in Panama during previous administrations, will not be renewed.
"We will consider the possibility of its early termination," he added.
"I do not believe that at this point there is any real threat to the neutrality agreement, its validity, much less the use of military force in connection with that agreement," said Mullino, emphasizing that it will be important to hold direct talks with Trump.
First official visit
Rubio later toured the Miraflores Strait, through which ships pass between the Pacific and the canal. Canal officials briefed him as the Panamanian-flagged ship passed through the Strait and descended toward the Pacific.
China has said it has no role in managing the canal and respects Panama's sovereignty and independence over the waterway.
"China has never interfered," Chinese Foreign Ministry spokeswoman Mao Ning said last month, responding to the US claims, adding that China recognizes the canal as a "permanent neutral international waterway."
Rubio is currently touring Central America and the Caribbean in his first tour as secretary of state, aiming to refocus US diplomacy on the Western Hemisphere – in part to garner support for curbing migration to the US southern border.
The visit also reflects the US desire to curb China's growing economic and political influence in Latin America.
Mulino announced that a memorandum of understanding, signed in July with the US Department of Homeland Security, could be expanded to allow the return of Venezuelan, Colombian and Ecuadorian migrants from the dangerous Darién Belt at US expense, via an airstrip in Panama.
The Darien Strip connects Colombia with Panama, and an increasing number of migrants are using this route on their way to the United States.
Rubio has ordered the State Department to make migration issues a central focus of diplomacy with countries in the region. Officials said Rubio will use the visit to secure the acceptance of US deportation flights to the region.
Bonus video:
