US warns Panama over Chinese influence in canal zone

U.S. Secretary of State Marco Rubio delivered a stern warning to Panamanian President José Raúl Mulino on February 2, urging him to curb Chinese influence over the Panama Canal or face potential U.S. retaliation. 

The meeting, held during Rubio's first foreign trip as Washington's top diplomat, highlighted growing tensions over control of the strategic waterway, Caliber.Az reports via foreign media.

Rubio, speaking on behalf of President Donald Trump, conveyed concerns that China’s presence in the canal zone could violate the 1977 treaty under which the U.S. transferred control of the waterway to Panama in 1999. That treaty guarantees the canal’s permanent neutrality, but Trump has expressed his desire for the U.S. to regain control over its administration.

A State Department statement underscored the seriousness of the issue, warning that the "status quo is unacceptable" and that the U.S. would take necessary measures to protect its rights under the treaty if immediate changes were not made. However, Mulino played down concerns, calling his talks with Rubio “respectful” and “positive.” He emphasized that there was no direct threat to the treaty’s validity but confirmed Panama would not renew its participation in China’s Belt and Road Initiative when the agreement expires.

The meeting came amid heightened diplomatic and economic pressures from the Trump administration. Over the weekend, the U.S. president announced sweeping tariffs on Canada and Mexico, escalating trade tensions with key allies. Meanwhile, about 200 Panamanian protesters took to the streets, decrying U.S. interference and burning banners featuring images of Trump and Rubio.

Rubio later toured the canal with administrator Ricaurte Vásquez, who reaffirmed that the waterway would remain under Panama’s control and accessible to all nations. However, speculation remains over whether Panama might consider a compromise, such as transferring operational control away from the Hong Kong-based Hutchison Ports to a U.S. or European company. An audit of the company’s no-bid contract extension is already underway, potentially paving the way for a rebidding process.

Beyond the canal issue, Rubio also raised concerns about illegal migration, an area of focus for Trump’s administration. He thanked Panama for its cooperation in taking back migrants but noted that U.S. foreign aid freezes had disrupted several regional programs targeting migration and crime. Meanwhile, U.S. Defense Secretary Pete Hegseth announced he would visit the U.S.-Mexico border to inspect troop deployments as part of Trump's broader immigration crackdown.

Rubio’s trip continues with visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, where he is expected to address similar concerns over security, migration, and Chinese influence in Latin America.

By Vugar Khalilov