During his inaugural overseas visit as US Secretary of State, Marco Rubio warned Panamanian President José Raúl Mulino that immediate action is necessary to decrease Chinese influence around the Panama Canal, or the Trump administration may retaliate. The discussions followed Trump’s concerns that China’s presence could breach the treaty established when the canal was handed over to Panama in 1999, which mandates its neutrality.
Rubio characterised the situation as untenable, citing the need for changes to protect American treaty rights. Mulino, however, described the talks as respectful and indicated there were no immediate threats against the treaty’s validity. He acknowledged US concerns regarding Chinese control at the canal’s ports but reassured that an audit of the operations is underway.
Protests occurred in Panama City during the meeting, with demonstrators expressing their discontent toward Rubio and defending national sovereignty. Mulino confirmed that Panama would not renew its agreement with China’s Belt and Road Initiative upon its expiration. Amid discussions on illegal immigration, it was noted that US foreign aid programs in the region are currently halted, complicating US-Panama relations and regional stability efforts. Rubio’s visit extends to several other Central American nations as part of the ongoing engagement strategy amid claims of Chinese expansionism influence.