President Trump issued a stern warning to Panama, threatening significant repercussions unless the country diminishes Chinese influence over the Panama Canal.
During his inaugural international trip as Secretary of State, Marco Rubio delivered this ultimatum in Panama City on Sunday. He met with Panamanian President Jose Raul Mulino and Foreign Minister Javier Martinez-Acha to convey President Trump’s concerns about alleged violations of the 1977 treaty guaranteeing the canal’s neutrality.
Rubio stated that the current situation is unacceptable and that, without immediate changes, the US will act to safeguard its treaty rights. A State Department readout of the meeting included this statement.
“The talks were respectful and positive,” Mulino commented to reporters following the meeting, adding that while he acknowledged US concerns, he didn’t perceive an imminent threat of retaliation.
“I don’t sense an immediate threat to the treaty, its validity, or the use of military force to seize the canal,” Mulino clarified. “Our technical teams can engage with the US to address any concerns,” he added, dismissing any negotiation regarding the canal’s ownership.
As a gesture of compromise, Mulino announced Panama would not renew, and might even terminate early, its 2017 agreements with China under Beijing’s Belt and Road Initiative.
Trump has repeatedly threatened to reclaim control of the Panama Canal, citing excessive fees and growing Chinese influence. The US built the canal in the early 20th century, transferring control to Panama in 1999.
On Sunday, Trump warned of imminent powerful action if Panama fails to comply.
“I don’t believe troops will be necessary in Panama,” he stated, reiterating that Panama’s actions severely compromise regional national security.
US officials previously expressed apprehension that China’s activities in Panama could violate the 1977 Panama Canal Neutrality Treaty, which grants the US the right to defend the canal from threats. Some US lawmakers believe China’s economic presence, encompassing infrastructure projects and port operations, undermines the canal’s neutrality and security.
A major point of contention involves the operation of ports at both canal entrances by Hong Kong-based CK Hutchison Holdings, viewed by US officials as being influenced by the Chinese government. The $1.3 billion bridge, currently under construction by a Chinese consortium, is also considered a significant security risk by some.