Panama vows to end key canal deal with China after Rubio lays down the Goliath

After an intense back and forth, Panama’s President José Raúl Mulino vowed to end a key deal with China related to the Panama Canal after his meeting with US Secretary of State Marco Rubio. The assurance came after US President Donald Trump complained that the Latin American nation is slowly ceding control over its critical shipping canal to Beijing.

During the meeting, Mulino made it clear that his nation’s sovereignty over the 51-mile waterway, which connects the Pacific Ocean and the Caribbean Sea will remain “unchanged,” Fox News reported. However, he made it clear that he would not renew a 2017 memorandum of understanding with China to join the country’s Belt and Road global development initiative.

Mulino insisted that Panama would instead work closely with the United States. “I think this visit opens the door to build new relations … and try to increase as much as possible US investments in Panama,” Mulino told reporters after meeting with Rubio, who was on his first international trip after being confirmed as the US Secretary of State.

More from World

Amid Trump's threats to acquire canal, Marco Rubio to visit Panama in first foreign tour US Secretary of State Rubio to visit Panama amid canal dispute

The President of Panama, José Raúl Mulino, vows NOT to renew the 2017 Chinese contracts on the Panama Canal that are part of the CCP’s Belt and Road Initiative. The contracts come up in one or two years, but could be even sooner.

A good strart!!
pic.twitter.com/rYuRlsLUl2

— Charlie Kirk (@charliekirk11) February 2, 2025

Soon after assuming power, Trump said that the United States would take control of the Panama Canal if the country’s authorities continued to lean towards China. Trump said that taking control of the canal is important to ensure the US’s national security. It is pertinent to note that the canal was built over several decades by the US and was only completed in 1914. It was later handed over to Panama during the Carter administration.

Rubia lays down the Goliath

During his trip to Panama, the former Florida Senator pushed Trump’s aggressive agenda, laying out an ultimatum from the Panama government. “Had the pleasure of meeting the incredible @USEmbPAN team during my first embassy meet and greet in my new role as Secretary of State!” Rubio wrote in a post on X. “Thankful for their dedication and ongoing efforts to promoting President Trump’s vision of an America First foreign policy.”

Rubio made it clear 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.” Last month, the US Department of  State estimated that 72 per cent of all vessels that travel in the canal are either coming from or going out of the United States.

I met with Panamanian President @JoseRaulMulino and Foreign Minister @javierachapma to make clear 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. We also discussed… pic.twitter.com/Hj0pXGahqk

— Secretary Marco Rubio (@SecRubio) February 2, 2025

Meanwhile, US Representative Dusty Johnson said that the waterway is also a key transit point for US Coast Guard and Department of Defense vessels. Without access to the canal the American ships would be forced to travel an additional l 8,000 miles around South America. “More than 10,000 ships use the Panama Canal each year, generating billions of dollars of tolls which would economically benefit America,” Johnson’s office said.

Had the pleasure of meeting the incredible @USEmbPAN team during my first embassy meet and greet in my new role as Secretary of State! Thankful for their dedication and ongoing efforts to promoting President Trump’s vision of an America First foreign policy. pic.twitter.com/j4tPBDCDoF

— Secretary Marco Rubio (@SecRubio) February 2, 2025

The Chinese control was not the only thing Rubio spoke about during his visit to the nation. “We also discussed efforts to end the hemisphere’s mass migration crisis and ensure fair competition for US firms,” Rubio added.

The US has its own plans

The Trump administration sees regaining the ownership of the Panama Canal as a priority. In regards to this, the House Republicans have introduced a bill in Congress which would enable the United States to purchase the canal. The bill named the Panama Canal Repurchase Act, was introduced by Representative Dusty Johnson, who is a member of the Select Committee on China and the House Transportation and Infrastructure Committee.

“President Trump is right to consider repurchasing the Panama Canal,” Johnson said in a statement. “China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe,” he added.