Panama Ends Key Deal with China, Strengthens Ties with the U.S. Following Rubio’s Visit

PANAMA CITY, Panama – In a significant shift in international relations, Panama’s President José Raúl Mulino announced plans to terminate a vital development agreement with China. This decision comes in the wake of a visit by U.S. Secretary of State Marco Rubio and rising concerns about Chinese influence over the Panama Canal.

Strengthening Sovereignty Over the Canal

During a press briefing on Sunday, President Mulino reaffirmed that Panama’s sovereignty over the vital 51-mile waterway, connecting the Pacific Ocean and the Caribbean Sea, will remain intact. He stated unequivocally that he would not renew the 2017 memorandum of understanding regarding China’s Belt and Road Initiative.

Instead, Mulino emphasized a renewed commitment to strengthen ties with the United States. “This visit opens the door to build new relations and aims to increase U.S. investments in Panama,” he remarked, highlighting the importance of collaboration with the U.S. government.

Rubio’s First Foreign Trip

Marco Rubio, a prominent political figure and former senator from Florida, noted that his first international trip as Secretary of State underscored a shift in American diplomatic focus. His team is prepared to advance a robust U.S. agenda, particularly in Latin America.

In a post shared on X (formerly Twitter), Rubio expressed gratitude for meeting the U.S. Embassy team in Panama, emphasizing their dedication to promoting President Trump’s vision of an America First foreign policy.

Concerns Over Chinese Control

Rubio articulated strong opposition to the growing influence of the Chinese Communist Party in the Panama Canal region. During his visit, he asserted, “The United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and increasing control over the Panama Canal area.”

Trump’s Stance on the Canal

Former President Donald Trump has consistently criticized China for exerting control over the canal, which was originally built by the U.S. and turned over to Panama in 1999. Trump has highlighted concerns that the Chinese government charges U.S. vessels exorbitant fees to pass through.

Legislative Actions

In response to these concerns, House Republicans introduced the Panama Canal Repurchase Act, which proposes negotiations to reacquire the canal. Representative Dusty Johnson, a supporter of the bill, stated, “President Trump is right to consider repurchasing the Panama Canal. China’s interest and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe.”

If passed, the bill would grant the U.S. President the authority to negotiate re-acquisition efforts with Panama.

Strategic Importance of the Canal

The Panama Canal plays a crucial role in global shipping and trade. Approximately 72% of all vessels using the waterway are destined for U.S. ports. Without access to the canal, ships would face an additional 8,000-mile journey around South America, significantly impacting trade efficiency.

Moreover, the canal serves as a critical transit point for U.S. Coast Guard and Department of Defense vessels, asserting America’s national security interests in the region.

Broader Discussion Points

While the canal dominated discussions during Rubio’s visit, other pressing issues were also on the agenda. Rubio highlighted efforts aimed at addressing the hemisphere’s migration crisis and ensuring fair competition for U.S. businesses.

Fox News Digital has reached out to the State Department for comments regarding these developments and is awaiting a response.

Contributions to this report were made by Fox News Digital’s Danielle Wallace.