Rubio Issues Ultimatum to Panama over Chinese Influence on Canal

Rubio Issues Ultimatum to Panama over Chinese Influence on Canal
US Secretary of State Marco Rubio conveyed a stern message to Panama, demanding immediate action to reduce Chinese influence over the Panama Canal. During his first overseas trip, Rubio conveyed President Donald Trump’s determination that Panama had violated the 1999 treaty that transferred ownership of the canal. Rubio cited China’s growing “influence and control” over the canal, through which 40% of US container traffic transits. He conveyed that the “status quo is unacceptable” and that without prompt changes, the US would “take measures necessary to protect its rights under the treaty.”
Panama’s Response and Cooperation
President Jose Raul Mulino of Panama expressed a more optimistic view following his meeting with Rubio. He announced that Panama would not renew its agreement with China’s Belt and Road initiative. Mulino also proposed technical-level talks with Washington to address concerns. Mulino has ordered an audit of a Hong Kong-based company with interests in ports on both sides of the canal, but Trump has deemed this step insufficient. Nonetheless, Mulino has pledged to strengthen cooperation on the US administration’s priority of repatriating undocumented migrants.
Chinese Influence and US Concerns
Rubio and Trump have expressed alarm over China’s growing power in the vicinity of the canal, asserting that it could potentially shut down the waterway in the event of a conflict. Around 21% of cargo passing through the canal originates from China. Trump has repeatedly threatened to “take it back” if Panama does not address the Chinese presence, though he has also suggested that US troops would not be necessary.
Historical Context and the Carter Agreement
The Panama Canal was constructed by the US in 1914. In 1977, President Jimmy Carter negotiated the agreement that handed over control of the canal to Panama in 1999. This agreement stemmed from the moral imperative Carter felt to respect the smaller nation of Panama.
Trump’s Departure from Carter’s Approach
Trump has adopted a markedly different approach from Carter, reverting to the “big stick” diplomacy of the early 20th century. This strategy involves wielding military force or threats of force to achieve the desired outcome.
Protests and Historical Significance
Rubio’s visit to Panama was met with small but intense protests. The Panama Canal remains a significant landmark and a source of national pride for Panama.