Panama’s president declared on Sunday that a crucial development deal with China would be terminated following discussions with Secretary of State Marco Rubio and amid complaints from President Donald Trump regarding the country’s surrender of control over the vital shipping canal to Beijing.
José Raúl Mulino, the president of Panama, affirmed that his country’s sovereignty over the 51-mile waterway connecting the Pacific Ocean and the Caribbean Sea would remain unchanged. He stated that the 2017 memorandum of understanding to participate in China’s Belt and Road global development initiative would not be renewed, with Panama seeking closer collaboration with the U.S. instead.
“I believe this visit creates opportunities to establish new relationships and aim to boost U.S. investments in Panama as much as possible,” Mulino told reporters after meeting with Rubio during his inaugural international trip as president.
Rubio, formerly a senator representing Florida before Trump appointed him as the top diplomat of America, indicated that his team is prepared to advance the U.S. agenda.
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“Had the pleasure of meeting the incredible @USEmbPAN team during my first embassy meet and greet in my new role as Secretary of State!” Rubio posted on X. “Grateful for their dedication and continued efforts to promote President Trump’s vision of an America First foreign policy.”
During his trip, Rubio expressed in a post on X that “the United States cannot, and will not, permit the Chinese Communist Party to persist with their effective and growing domination of the Panama Canal area.”
Trump has raised concerns about China’s control over the canal and the substantial fees it charges U.S. ships to traverse Panama’s isthmus. While the canal was constructed by the U.S. over several decades and completed in 1914, it was transferred to Panama during the Carter administration.
Regaining ownership of the Panama Canal has been a priority for Trump in his administration. House Republicans introduced a bill to enable the United States to repurchase the Panama Canal following Trump’s worries about Chinese control.
The legislation, named the Panama Canal Repurchase Act, was introduced by Rep. Dusty Johnson, R-S.D., a member of the Select Committee on China and the House Transportation and Infrastructure Committee.
“President Trump is correct in considering the repurchase of the Panama Canal,” Johnson stated. “China’s involvement in and presence around the canal is a cause for alarm. America must demonstrate strength internationally – possessing and operating the Panama Canal could be a significant step towards a stronger America and a more secure world.”
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Panama declared it will not extend the Belt and Road Initiative with China following a visit from Secretary of State Marco Rubio to the country. (Reuters)
If passed into law, the bill would empower the president to work alongside the secretary of state to “initiate and carry out negotiations with appropriate counterparts of the Government of the Republic of Panama to reacquire the Panama Canal.”
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President Donald Trump has expressed concerns about China controlling the Panama Canal. (Getty Images)
The U.S. Department of State estimates that approximately 72% of all vessels using the Panama Canal are traveling to or from a U.S. port.
Citing the canal’s strategic significance to the United States, Johnson’s office also highlighted how the waterway serves as a critical transit point for U.S. Coast Guard and Department of Defense vessels.
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Without access to the canal, ships would have to navigate an additional 8,000 miles around South America.
“Over 10,000 ships pass through the Panama Canal annually, generating billions of dollars in tolls that could benefit America economically,” stated Johnson’s office.
While the canal and China’s involvement in the region were major topics of discussion, Rubio had other matters to address.
“We also talked about efforts to resolve the hemisphere’s mass migration crisis and ensure fair competition for U.S. companies,” Rubio added.
Fox News Digital reached out to the State Department but did not immediately receive a response.
Fox News Digital’s Danielle Wallace contributed to this report.
Stepheny Price is a writer for Fox News Digital and Fox Business. Story tips and ideas can be sent to [email protected]
