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Panama Bows to U.S. Demands, Ends China’s Influence Over Canal

Panama vowed to end its deal with China over the Panama Canal following U.S. Secretary of State Marco Rubio's visit. The country aims to strengthen ties with U.S. and maintain its sovereignty over crucial waterway

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Panama Bows to U.S. Demands, Ends China’s Influence Over Canal

Panama’s President José Raúl Mulino recently pledged to end a key deal with China regarding the Panama Canal. This decision followed pressure from U.S. President Donald Trump, who voiced concerns about China’s growing influence over the vital waterway.

Assurance of Sovereignty

During a meeting with U.S. Secretary of State Marco Rubio, Mulino assured that Panama’s sovereignty over the 51-mile Panama Canal would remain intact. He emphasized that Panama would not renew the 2017 agreement with China to join its Belt and Road Initiative. Instead, Panama plans to strengthen its relationship with the U.S. Mulino expressed, “I think this visit opens the door to build new relations… and try to increase as much as possible U.S. investments in Panama.”

Trump’s Warning on Canal Control

In the past, Trump warned Panama that the U.S. might take control of the canal if the country continued to engage with China. Trump sees control of the canal as vital to U.S. national security. The U.S. built the canal, completing it in 1914, and handed control to Panama in 1999 under the Carter administration.

Rubio’s Strong Stance

Rubio, during his visit to Panama, backed Trump’s stance. He made it clear that the U.S. would not allow China’s growing control over the Panama Canal. He said, “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.”

The U.S. Department of State reported that 72 percent of vessels passing through the canal are linked to the U.S. Representative Dusty Johnson highlighted the canal’s importance for U.S. military and Coast Guard operations. Without access, U.S. ships would have to travel 18,000 extra miles around South America.

Economic Impact of the Canal

Over 10,000 ships pass through the Panama Canal every year, generating billions of dollars in tolls. These tolls provide significant economic benefits to the U.S., further emphasizing the need for continued access and control over the waterway.

Other Key Discussions During Rubio’s Visit

Rubio’s visit also focused on addressing the migration crisis in the region. He also stressed the importance of fair competition for U.S. companies in Panama.

U.S. Push to Repurchase the Canal

The Trump administration sees regaining control of the Panama Canal as a priority. To that end, House Republicans have introduced the “Panama Canal Repurchase Act.” This bill aims to give the U.S. an opportunity to repurchase the canal from Panama. Representative Dusty Johnson, who sponsored the bill, said, “China’s interest in and presence around the canal is a cause for concern. America must project strength abroad.” He added, “Owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe.”

Johnson further supported Trump’s position, stating, “President Trump is right to consider repurchasing the Panama Canal.”