After Meeting with Rubio, Panama’s President Says ‘No Real Threat’ From US To Seize Canal

Rubio told Panama it needs to reduce 'Chinese influence' over the canal, a reference to a Hong Kong-based company that manages two ports

by Dave DeCamp February 2, 2025

https://news.antiwar.com/2025/02/02/after-meeting-with-rubio-panamas-president-says-no-real-threat-from-us-to-seize-canal/

Secretary of State Marco Rubio was in Panama on Sunday on his first foreign trip since being sworn in and met with President José Raúl Mulino to discuss the Panama Canal.

President Trump had been threatening to “take back” the Panama Canal, but Mulino said after meeting with Rubio that he did not see a serious threat of US military action despite some strong comments.

“I don’t feel that there is any real threat at this time against the treaty, its validity, or much less of the use of military force to seize the canal,” Mulino told reporters after the meeting.

Trump has set his sights on the Panama Canal over claims that it’s controlled by China, an accusation that lacks evidence and that Panamanian officials have strongly denied.

The US claim appears to be based on the fact that two ports on either side of the canal are operated by CK Hutchinson, a company based in Hong Kong. Other nearby ports are run by companies based in the US, Taiwan, and Singapore.

Panamanian officials suspect Trump’s real motive is to reduce Chinese investments in Panama to make opportunities for US companies and potentially negotiate cheaper transit fees for US ships. According to the State Department, Rubio warned the US would take action if Panama didn’t reduce “Chinese influence” in the canal.

“Secretary Rubio informed President Mulino and Minister Martínez-Acha that President Trump has made a preliminary determination that the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal and represents a violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal,” the State Department said in a readout of the meeting.

“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” the statement added.

According to The Associated Press, Mulino did say that Panama wouldn’t renew its agreement with China on Beijing’s global infrastructure project, known as the Belt and Road Initiative. Panama joined the BRI in 2017 after it severed diplomatic relations with Taiwan and opened up with Beijing under President Juan Carlos Varela.