President Donald Trump reiterated his intention to “take back” the Panama Canal on the evening of Sunday, February 2, warning of “powerful” US actions in a diplomatic standoff with Panama over China’s influence around the key waterway.
“China is controlling the Panama Canal, which was not given to China—it was given to Panama, but they violated the agreement. We’re going to take it back, or something very powerful will happen,” Trump told reporters.
The tension surrounding Trump’s vocal demand for the US to regain control of the canal seemed to ease earlier that day when Secretary of State Marco Rubio, on his first overseas trip in his new role, met with Panama’s President Raúl Mulino.
Although Mulino reaffirmed Panama’s sovereignty over the canal, he also addressed US concerns regarding China’s presence in the area, announcing that Panama would not renew a 2017 agreement to join China’s Belt and Road Initiative and suggested that the deal with Beijing might be terminated ahead of schedule.
Mulino emphasized that Panama seeks to enhance its relationship with the US, particularly through new investments and infrastructure projects. “This visit opens the door to building new relations and increasing US investments in Panama,” he stated.
Rubio, during the meeting, indicated that the US might have to take steps to protect its interests in the canal, based on a longstanding treaty that ensures the neutrality and operation of the waterway.
The Panama Canal was handed back to Panama under a 1977 treaty, which also permits the US to intervene militarily if the canal’s operations are threatened by internal conflict or a foreign power. Currently, the canal handles more cargo than during the years of US control.
Mulino, however, expressed doubt that military action would be taken, and added that Panama had discussed with Rubio the possibility of expanding a migrant repatriation program to remove foreign nationals without legal status in Panama, with the US covering all associated costs.
When asked about the logistics of the program, Mulino confirmed, “Yes. Exactly. We can do that, without a problem, at the US’s total cost. Panama won’t invest a single dollar in it.”
