Staff Reports
The recent meeting between Secretary of State Marco Rubio and Panamanian President José Raúl Mulino has set off quite the stir, and not just because Panama might serve better margaritas than the average D.C. watering hole. During Rubio’s trip, which marks his first overseas jaunt as America’s top diplomat, discussions turned to the ever-contentious Panama Canal and whether the United States might take it back. It appears President Donald Trump wasn’t just tweeting into the void when he raised concerns about China’s grip around the canal like a kid with a death grip on candy at a store.
The crux of Rubio’s conversations centered on the dubious dealings Panama has had with the Chinese Communist Party, which Trump has long claimed jeopardize American national security. After all, the United States built the canal and gave it to Panama under the terms of the 1978 Torrijos-Carter Treaties, those fateful documents that seem to have every possible pitfall baked into them. Should Panama fail to keep the canal neutral—as it was promised—the U.S. retains the right to claim it back. Rubio elaborated that given the current favoritism towards Chinese interests, a strong case can be made that the agreement has been, shall we say, stretched thinner than a pair of worn-out spandex shorts.
US Secretary of State Marco Rubio warns Panama of US action unless it makes 'immediate changes' to the Panama Canal, claiming it has violated handover treaty pic.twitter.com/mY4OKrK5P1
— TRT World Now (@TRTWorldNow) February 2, 2025
What does this mean for Panama? President Mulino has attempted to brush aside claims of Chinese influence like a duck shaking off water. He rallied bravely at a press conference, insisting that he hasn’t seen any proof of a foreign military presence in the canal area. No doubt spouting this bravado in front of a live microphone, he might just be hiding a few nervous beads of sweat. After all, his government has boldly admitted that they are cozying up to China (the economic frenemy), leading many to wonder if they haven’t gotten a bit too close for comfort.
Interestingly enough, Panamanian President Mulino, fresh out of a conservatively good election victory promising to tackle illegal immigration, has decided to undertake some damage control. In a dramatic gesture meant to soothe American concerns, he announced Panama would be ditching the Belt and Road Initiative—a signature Chinese program seen as a not-so-covert way to snare the sovereignty of even the most resilient nations. This move could be interpreted as Panama attempting to appease its big brother to the north while hoping not to get too tangled in a web of predatory loans and obligations.
As Secretary Rubio continues his trip through Central America, with subsequent stops in several other countries that could likely use a lesson in basic economics, it remains to be seen how hard the U.S. will press its claims. The options on the table include everything from legal maneuvers at the International Court of Justice to a good old-fashioned game of diplomatic chess. Whatever target the administration chooses, it serves as a stark reminder that when it comes to national interests, America is more serious than a squirrel in a room full of rocking chairs. The canal isn’t just a waterway; it’s a test of whether America will let a foreign power dictate access to its own trade routes.
In the meantime, Panama insists it will not back down on its claims of complete control. For now, a cordial relationship has been maintained, but one can wonder just how long that will last until the next spat about who really runs the canal begins—while the rest of the region looks on, popcorn in hand.
