Panama’s President Vows to End Development Deal with China, Strengthen Ties with the U.S.
Panama’s President, José Raúl Mulino, announced on Sunday that his country will no longer participate in China’s Belt and Road global development initiative. This decision comes after complaints from President Donald Trump about China’s control over Panama’s critical shipping canal. Mulino assured that Panama’s sovereignty over the canal will remain unchanged, but expressed his desire to work more closely with the United States.
During a meeting with Secretary of State Marco Rubio, Mulino emphasized the importance of building new relations with the U.S. and increasing American investments in Panama. Rubio, who previously served as a senator representing Florida, expressed his team’s readiness to push the U.S. agenda.
Trump’s Concerns over Chinese Control of the Panama Canal
President Trump has repeatedly voiced concerns about China’s control over the Panama Canal and the high toll fees charged to U.S. ships. The canal, which was completed by the U.S. in 1914 and later handed over to Panama, has become a priority for Trump’s administration. In fact, House Republicans have introduced a bill to repurchase the canal in order to regain American ownership.
Rep. Dusty Johnson, a member of the Select Committee on China and the House Transportation and Infrastructure Committee, introduced the Panama Canal Repurchase Act. Johnson stated that China’s interest in and presence around the canal is a cause for concern, and regaining ownership of the canal would project strength abroad and contribute to a more secure globe.
The Strategic Importance of the Panama Canal
The U.S. Department of State estimates that approximately 72% of all vessels passing through the Panama Canal are either coming from or going to a U.S. port. The canal is not only crucial for commercial shipping but also serves as a key transit point for U.S. Coast Guard and Department of Defense vessels. Without access to the canal, ships would have to travel an additional 8,000 miles around South America, resulting in significant economic costs.
Looking Beyond the Canal
While the canal’s control and China’s influence were the main topics of discussion during the meeting between Mulino and Rubio, other issues were also addressed. Efforts to end the mass migration crisis in the hemisphere and ensure fair competition for U.S. firms were among the topics of concern.
As Panama seeks to strengthen its ties with the United States, it remains to be seen how this decision will impact the country’s future relationships with China. The U.S. continues to assert its commitment to protecting its interests in the region, while China aims to expand its global influence through initiatives like the Belt and Road project. The outcome of this power struggle will undoubtedly have long-lasting implications for Panama and the entire Latin American region.
