Panama has announced plans to end its canal agreement with China following a visit from U.S. Secretary of State Marco Rubio. During his visit, Secretary Rubio met with Panama’s President Raúl Mulino to discuss concerns over China’s influence around the Panama Canal. President Mulino assured Rubio that Panama’s sovereignty over the canal remains intact but acknowledged Washington’s concerns.
The decision involves not renewing a 2017 memorandum of understanding with China, which was part of China’s Belt and Road Initiative. President Mulino suggested that the agreement with Beijing could end earlier than planned. He expressed interest in strengthening ties with the United States, particularly in infrastructure investments.
President Donald Trump had previously expressed a desire for the U.S. to “take back” the canal, citing China’s growing presence as a concern. However, President Mulino downplayed the possibility of U.S. military intervention, emphasizing Panama’s control over the canal.
Panama is also conducting an audit on a Chinese-linked company operating terminals around the canal. The audit aims to determine any necessary legal actions. The company, Panama Ports Company, is part of CK Hutchison Holdings, a Hong Kong-based conglomerate.
In addition to canal discussions, Panama and the U.S. talked about expanding a migrant repatriation flight program. This initiative aims to reduce irregular migration through the Darien Gap, with the U.S. covering the costs of repatriating migrants from various countries.
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