Panama’s President José Raúl Mulino announced Sunday that his government will end a key development deal with China following a meeting with Secretary of State Marco Rubio and after President Trump raised concerns that Beijing had gained control over the country’s vital shipping canal.
Mulino reaffirmed Panama’s sovereignty over the 51-mile waterway, which connects the Pacific Ocean and the Caribbean Sea, but said he would not renew a 2017 memorandum of understanding to participate in China’s Belt and Road global development initiative. Instead, he signaled a shift toward strengthening ties with the U.S.
“I think this visit opens the door to build new relations … and try to increase as much as possible U.S. investments in Panama,” Mulino told reporters following his meeting with Rubio, who was on his first international trip since being confirmed.
State Department
Trump has repeatedly raised concerns that China exerts influence over the canal and charges U.S. ships six-figure premiums to cross the isthmus. The canal, completed by the U.S. in 1914, was handed over to Panama under the Carter administration.
The U.S. Department of State estimates that approximately 72% of all vessels passing through the canal are traveling to or from an American port.
“We also discussed efforts to end the hemisphere’s mass migration crisis and ensure fair competition for U.S. firms,” Rubio added.
