The United States Secretary of State, Marco Rubio, concluded his official visit to Panama on Monday. During his visit, Panama committed to not renewing a commercial agreement with China and to working with the US Navy to prioritize the transit of US ships through the Panama Canal. This commitment was made after the US expressed concerns about China’s influence on the canal, particularly with regards to two ports operated by a Chinese company.
The Panama Government had sought to ease tensions with Rubio, which arose from the management of the two ports near the canal by a company based in Hong Kong. The controversy surrounding the interoceanic route, China, and migration were key topics of discussion during Rubio’s meeting with Panamanian President José Raúl Mulino.
Reducing Ties with China
Following the meeting between the two officials, Panama announced its intention to distance itself from China. Rubio welcomed this decision, calling it a “big step forward” for US-Panama relations and for a free Panama Canal. Mulino informed Rubio that audits are being conducted on the Chinese company operating the two ports, and no decision can be made until the audits are complete. The company in question, CK Hutchison Holdings, has been under scrutiny by Panamanian authorities for weeks.
Although Mulino described the meeting as “cordial and respectful,” Rubio issued a strong statement demanding “immediate changes” to counteract Chinese influence on the Panama Canal. This contrast in communication styles highlights the differences in approach between the two leaders.
Panama Canal Commitments
After the meeting, Mulino reaffirmed Panama’s sovereignty over the canal, stating that it is not in question. He also clarified that there is no threat to the treaty’s validity or the use of military force to seize the canal. Rubio visited the Panama Canal and met with its authorities, who agreed to work with the US Navy to prioritize US ship transits. As one of the main clients of the Panama Canal, the US has a significant interest in the canal’s operation, with 52% of transits registered in the last fiscal year having US origins or destinations.
Migration Cooperation
During the meeting, Mulino offered to strengthen cooperation with the US on migrant deportation. Panama and the US have an agreement to return migrants who have crossed the Darién jungle, and Rubio attended one of these flights before leaving for El Salvador. He acknowledged that the US border effectively starts much earlier than Texas and Mexico, highlighting the need for cooperation on migration issues. The US has financed nearly $2.7 million in flights and tickets for the return of 1,729 migrants to their countries of origin since the agreement was launched on July 1.