A high-stakes diplomatic visit to Panama by U.S. Secretary of State Marco Rubio sparks major shifts in control over one of the world's most crucial maritime passages.
According to Fox News, Panama's president José Raúl Mulino has pledged to terminate a key development agreement with China while expressing commitment to strengthen ties with the United States following Rubio's visit.
The decision comes amid growing concerns from President Donald Trump about Chinese influence over the strategic waterway. Panama will not renew its 2017 memorandum of understanding to participate in China's Belt and Road global development initiative, marking a significant shift in the country's international alignments.
The Trump administration has prioritized regaining ownership of the Panama Canal, viewing Chinese influence in the region as a direct threat to U.S. interests. House Republicans have taken concrete steps by introducing the Panama Canal Repurchase Act, spearheaded by Rep. Dusty Johnson from South Dakota.
Johnson, who serves on both the Select Committee on China and the House Transportation and Infrastructure Committee, expressed his support for Trump's initiative. He emphasized the critical nature of addressing China's presence around the canal.
Secretary Rubio, who previously represented Florida in the Senate before his appointment as Secretary of State, demonstrated the administration's commitment to reasserting American influence in the region through his first international visit in his new role.
The Panama Canal's significance to U.S. maritime operations cannot be overstated. Department of State data reveals that approximately 72% of vessels traversing the canal are either heading to or departing from American ports.
Without access to this crucial waterway, ships would face an additional 8,000-mile journey around South America. This detour would significantly impact both military operations and commercial shipping costs.
The canal generates billions in toll revenue annually, with over 10,000 ships utilizing the passage each year. These financial benefits have become a focal point in discussions about potential U.S. reacquisition of the waterway.
Rep. Johnson outlined his position on the proposed legislation to repurchase the canal from Panama:
President Trump is right to consider repurchasing the Panama Canal. China's interest in 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.
Secretary Rubio emphasized the administration's stance during his visit through social media:
The United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.
The congressional initiative would empower the president to collaborate with the secretary of state in negotiating the reacquisition of the Panama Canal from Panama's government. This marks a significant departure from the Carter administration's decision to transfer control to Panama.
The Trump administration's push to reclaim the Panama Canal represents a major shift in U.S.-Panama relations. Panama's decision to end its agreement with China while pursuing closer ties with the United States signals a new chapter in the canal's history. As legislative efforts advance and diplomatic negotiations continue, the future management and control of this vital maritime passage hangs in the balance, with significant implications for global trade and regional security.
