Trump's Threats Deliver a Big Win as Panama Agrees to Alter Course on Canal
Panamanian President José Raúl Mulino announced Sunday that his country will be ending a development deal with communist China.
The announcement came during a visit by Secretary of State Marco Rubio to the Central American nation, so a big win for U.S. diplomacy and the America First agenda.
Rubio wrote in a Sunday post on X, “I met with Panamanian President @JoseRaulMulino and Foreign Minister @javierachapma to make clear that 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. We also discussed efforts to end the hemisphere’s mass migration crisis and ensure fair competition for U.S. firms.”
I met with Panamanian President @JoseRaulMulino and Foreign Minister @javierachapma to make clear that 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. We also discussed… pic.twitter.com/Hj0pXGahqk
— Secretary Marco Rubio (@SecRubio) February 2, 2025
The secretary added in a Monday morning post, “Yesterday’s announcement by President @JoseRaulMulino that Panama will allow its participation in the CCP’s Belt and Road Initiative to expire is a great step forward for U.S.-Panama relations, a free Panama Canal, and another example of @POTUS leadership to protect our national security and deliver prosperity for the American people.”
Yesterday’s announcement by President @JoseRaulMulino that Panama will allow its participation in the CCP’s Belt and Road Initiative to expire is a great step forward for U.S.-Panama relations, a free Panama Canal, and another example of @POTUS leadership to protect our national… https://t.co/U1xrZjqk1p
— Secretary Marco Rubio (@SecRubio) February 3, 2025
Fox News reported that Panama entered into an agreement with China in 2017 as part of the communist nation’s worldwide Belt and Road development initiative.
In exchange for making infrastructure improvements in countries, often ports, China gains access to the market and, no doubt, influence over policies of the host nation.
The President of Panama, José Raúl Mulino, vows NOT to renew the 2017 Chinese contracts on the Panama Canal that are part of the CCP’s Belt and Road Initiative. The contracts come up in one or two years, but could be even sooner.
A good strart!!
pic.twitter.com/rYuRlsLUl2— Charlie Kirk (@charliekirk11) February 2, 2025
State Department representative Tammy Bruce said in a Sunday statement, “Secretary Rubio informed President Mulino and Minister Martínez-Acha that President Trump has made a preliminary determination that the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal and represents a violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.”
“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” she added.
The treaty Bruce referred to was entered into by the U.S. and Panama in 1977 under then-President Jimmy Carter, and it governed return of the Canal Zone to Panama.
Trump told reporters Sunday night that Panama is in violation of the agreement.
“They’re not allowed to violate the agreement,” he said. “China’s running the Panama Canal. It was not given to China. That was given to Panama, foolishly. But they violated the agreement. We’re going take it back, or something very powerful is going to happen.”
🚨President Trump on the Panama Canal:
“Panama violated the agreement. China is running it. It was not given to China. We’re gonna take it back.. or something very powerful is going to happen.
pic.twitter.com/oBD8uHraot— Benny Johnson (@bennyjohnson) February 3, 2025
So it looks like President Mulino got the message loud and clear from Trump and Rubio, and he has adjusted accordingly.
Score a win for America First.
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