Marco Rubio warns Panama to cut Chinese influence in Canal or face US action

Panama rejects US control of Canal

Mulino insisted that the canal’s sovereignty was not up for discussion but offered to assist in repatriating migrants traveling through Panama toward the US—provided Washington funded the effort.

He suggested expanding an existing agreement with the US to deport non-Panamanian migrants who cross the Darién Gap, a dense jungle on Panama’s southern border with Colombia. The expanded deal could include deportations of people from Venezuela, Colombia, and Ecuador, Mulino said after the meeting.

“We had a very respectable and cordial meeting,” he stated, but made it clear that the canal “is operated by our country and will continue to be.”

Mulino also announced that Panama would not renew its Belt and Road Initiative partnership with China and invited the US to invest more in the country.

US concerns over the canal

Rubio, on his first major diplomatic tour in the region, is aiming to strengthen ties with Central America and the Caribbean, partly to curb migration to the US. Before Trump’s presidency, Mulino had already signed agreements with Washington to increase deportations and surveillance along the Darién Gap. In January, migration through the area dropped by 94% compared to 2023.

Trump’s renewed interest in the canal has sparked tensions. Last week, The Guardian reported that a US Senate committee accused Panama of mismanaging the waterway. Years of drought have reduced traffic through the canal, with limited transit slots being auctioned for up to $4 million. Experts say a new dam on the Rio Indio could resolve the crisis, but it would be a complex and costly project.

Trump, however, is pushing for stronger measures. He recently said that an audit of ports near the canal, ordered by Panama’s government, was “not enough.” He claimed Panama had “totally violated” its agreement with the US when the canal was handed over in 1999. “They’ve already offered to do many things,” Trump told reporters, “but we think it’s appropriate that we take it back.”

Protests in Panama

As Rubio met with Mulino, around 200 protesters marched in Panama City, waving national flags and chanting, “Marco Rubio out of Panama” and “Long live national sovereignty.” Some burned a banner featuring images of Trump and Rubio before being stopped by riot police.

Union leader Saul Mendez called Rubio “the imperial messenger” and declared: “We reiterate that there is absolutely nothing here for Trump. Panama is a free and sovereign nation”,  as reported by The Guardian.

China has dismissed Trump’s claims, stating that it does not control the canal and respects Panama’s sovereignty. The canal is operated by the Panama Canal Authority, an independent agency under Panama’s government.

Despite tensions, Mulino has maintained that any major concessions on the canal’s management or fee structure, which contributes significantly to Panama’s budget, are not up for negotiation.

(with inputs from agencies)