US Secretary of State Marco Rubio has demanded Panama to make immediate changes to what he deems as China's "influence and control" over the Panama Canal. Rubio stated that Panama must act swiftly or the US would take necessary measures to safeguard its rights as outlined in a treaty between the two nations.
This warning comes after President Donald Trump's pledge to reclaim the canal and a meeting between Rubio and Panama's conservative President Jose Raul Mulino in Panama City on Sunday. The two officials seemed to have differing interpretations following their two-hour discussion.
While Mulino suggested a proposal for technical-level talks with the US to address Trump's concerns about Chinese influence, Trump's assertion to retake the canal has triggered significant backlash in Panama. Protests erupted in Panama City on Friday, with effigies of Trump and Rubio being burned.
Moreover, the issue of the canal's ownership was firmly addressed by Mulino, who stated that it was non-negotiable: It's sealed, the canal belongs to Panama. The waterway is owned and managed by the Panamanian government under a neutrality treaty signed with the US years ago, despite substantial investments by Chinese companies in nearby ports and terminals.
Trump's assertive approach, including not ruling out military action, has instigated a strong patriotic sentiment within Panama, with some citizens expressing discontent and recalling past restrictions under US control. A Panama City resident highlighted, There's a treaty that he has to respect, and there's nothing in the treaty that says that we cannot have ports run by the Chinese.
Analysts in Panama have expressed skepticism about the leadership's management of the canal, noting limited benefits reaching ordinary citizens. An observant hotel worker in Panama City remarked, They're not administrating the Panama Canal the right way… No Panamanians have [the] benefits.