Additional Coverage:
Panamanian President José Raúl Mulino announced he will not renew a 2017 agreement with China concerning its Belt and Road initiative. This decision follows a meeting with US Secretary of State Marco Rubio and concerns voiced by former President Donald Trump about growing Chinese influence over the Panama Canal.
Mulino reassured that Panama retains full sovereignty over the canal. He expressed a desire to strengthen ties with the US and encourage more American investment in Panama.
Rubio, on his first international trip as Secretary of State, emphasized the US commitment to its interests in the region. He stated that the US will not tolerate the Chinese Communist Party’s increasing influence over the Panama Canal.
Former President Trump has repeatedly claimed China controls the canal and imposes excessive fees on American ships. He has made regaining US ownership of the canal a priority.
In response to these concerns, a House Republican, Rep. Dusty Johnson, introduced the Panama Canal Repurchase Act.
This bill would authorize the President to negotiate with Panama to buy back the canal. Johnson cited concerns about Chinese presence near the canal and the waterway’s strategic importance to the US.
The canal significantly shortens travel time for American ships, including those belonging to the Coast Guard and Department of Defense. It also generates substantial revenue from tolls.
Besides the canal, Rubio’s discussions with Panamanian officials also addressed regional migration and ensuring fair competition for US companies.