U.S. Senator Marco Rubio met this Sunday with Panamanian President José Raúl Mulino in Panama City. During the meeting, Rubio warned that the United States will take action if Panama does not make urgent changes in the management of the Panama Canal, as Washington claims the Central American country has violated the canal transfer treaty.
State Department spokesperson Tammy Bruce explained that Rubio made it clear that the current situation is “unacceptable” and that if immediate changes are not made, the United States will act to protect its rights under the treaty.
Concern Over Chinese Influence in the Canal
According to Rubio, President Donald Trump has determined that China’s growing influence in the Panama Canal is a threat to the security of the interoceanic route and a violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.
For his part, the Panamanian president denied any risk to the canal’s sovereignty.
“The canal is operated by Panama and will continue to be so,” Mulino stated at a press conference following the meeting.
Before arriving in Panama, Rubio published an article in The Wall Street Journal emphasizing the importance of his trip for Trump’s strategy in Latin America. His agenda included topics such as irregular migration control, the fight against drug trafficking, and China’s influence in the region.
The Future of the Canal Amid Tensions
Rubio made it clear that Trump wants to regain control of the canal, which was handed over to Panama in 1999 following the signing of the Torrijos-Carter Treaty in 1977.
In an interview with SiriusXM, Rubio stated that the Trump administration considers the current canal management a strategic risk due to Chinese investments in its infrastructure. According to him, China could block traffic in the interoceanic route, which would be a violation of the treaty.
Currently, the Hong Kong-based company Hutchison Ports holds a concession to operate port terminals at both ends of the canal. Recently, it obtained a 25-year extension without a bidding process, raising concerns in Washington. An audit is underway to assess this extension and determine whether it is viable or if a new concession is required.
Some analysts believe that Panama could transfer the operating concession to a U.S. or European company to ease U.S. concerns. However, it remains unclear whether this will be enough for Trump.
Rubio’s Diplomatic Tour
After his visit to Panama, Rubio will continue his tour through El Salvador, Costa Rica, Guatemala, and the Dominican Republic, where he will discuss security and migration cooperation with regional leaders.
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