Panama promises to end key agreement with China amid US pressure

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Jack Aylmer Anchor

By Jack Aylmer (Anchor), Evan Hummel (Producer), Michael Edwards (Video Editor)

The U.S. warned Panama about Chinese influence over the Panama Canal, threatening action if not addressed.
Panama responded by offering free passage for U.S. military ships.
Panama’s president also vowed to withdraw from a key lending agreement with China.

U.S. Secretary of State Marco Rubio warned Panama’s President Jose Raul Mulino on Sunday, Feb. 2, to curb reported Chinese influence over the Panama Canal. If Panama did not, The U.S. State Department said that the United States would “take measures” it feels are necessary to protect its rights under the Panama Canal treaty.

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How is Panama responding?

Following the warning, Mulino promised to provide free passage for U.S. military ships through the canal and to withdraw from a key lending agreement with China, known as the Belt and Road Initiative. The initiative funds infrastructure projects in Latin American countries through Beijing.

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However, critics argue, the funds leave poor countries indebted to Beijing and forces them to recognize Taiwan as part of China, effectively eliminating trade with Taipei.

U.S National Adviser Mike Waltz said the move is a “step in the right direction” but added that there are still further concerns about the canal.

Mulino also agreed to review some Chinese businesses in Panama, including Hong Kong-based CK Hutchinson, which currently operates ports at both entrances of the canal and is under a 25-year contract.

What’s the background on the issue?

Rubio said during his confirmation hearing in January 2024 that the contract underscores Beijing’s expanding influence in Panama and violates a neutrality treaty with the United States. Rubio alleged China’s operation of ports near points of entry could threaten the autonomy of the canal by allowing Beijing easier access to potentially shutdown the canal to U.S. ships.

“If these companies control both ends of that canal in a time of conflict, and the Chinese tell them, ‘Shut it down and don’t let them through there,” We’ve got a big, big problem. A big economic problem and a big national security problem,” Rubio said.

What’s the bigger picture?

Mulino’s promise comes as President Donald Trump continues to push for a U.S. takeover of the passageway. He continued that push on Sunday, Feb. 2.

“What they’ve done is terrible,” Trump told reporters. “They violated the agreement, and they’re not allowed to violate the agreement. China is running the Panama Canal that was not given to China, that was given to Panama, foolishly.”

Trump added, “But they violated the agreement and we’re going to take it back or something very powerful is going to happen.”

China and Panama repeatedly denounced Trump’s claims of Beijing’s control over the Panama Canal as false. Mulino has continually said Panama will not relinquish control of the canal to the United States or any other country.

Tags: Beijing, China, Donald Trump, Marco Rubio, One-China, Panama, Panama Canal, People’s Republic of China, South America, South China Sea, State Department, Taiwan, White House

[JACK AYLMER]

SECRETARY OF STATE MARCO RUBIO WARNED PANAMA’S PRESIDENT JOSE RAUL MULINO SUNDAY TO CURB REPORTED CHINESE INFLUENCE OVER THE PANAMA CANAL. IF PANAMA DID NOT, THE STATE DEPARTMENT SAID THE U-S WOULD “TAKE MEASURES” IT FEELS ARE NECESSARY TO PROTECT ITS RIGHTS UNDER THE CANAL TREATY.

FOLLOWING HIS WARNING, MULINO PROMISED FREE PASSAGE FOR U-S MILITARY SHIPS THROUGH THE CANAL AND TO WITHDRAW FROM A KEY LENDING AGREEMENT WITH CHINA, KNOWN AS THE BELT AND ROAD INITIATIVE.

THE INITIAVE FUNDS INFRASTRUCTURE PROJECTS IN LATIN AMERICAN COUNTRIES THROUGH BEIJING.

CRITICS ARGUE THE FUNDS LEAVE POOR COUNTRIES INDEBTED TO BEIJING AND FORCES THEM TO RECOGNIZE TAIWAN AS PART OF CHINA, EFFECTIVELY ELIMINATING TRADE WITH TAIPEI.

U-S NATIONAL SECURITY ADVISER MIKE WALTZ SAID THE MOVE IS A “STEP IN THE RIGHT DIRECTION” BUT ADDED THERE ARE STILL FURTHER CONCERNS ABOUT THE CANAL.

MULINO ALSO AGREED TO REVIEW SOME CHINESE BUSINESSES IN PANAMA, INCLUDING HONG KONG-BASED C-K HUTCHINSON, WHICH CURRENTLY OPERATES PORTS AT BOTH ENTRANCES OF THE CANAL AND IS UNDER A 25-YEAR CONTRACT.

RUBIO SAID DURING HIS CONFIRMATION HEARING THE CONTRACT UNDERSCORES BEIJING’S EXPANDING INFLUENCE IN PANAMA AND VIOLATES A NEUTRALITY TREATY WITH THE U-S.

ALLEGING CHINA’S OPERATION OF PORTS NEAR POINTS OF ENTRY COULD THREATEN THE AUTONOMY OF THE CANAL BY ALLOWING BEIJING EASIER ACCESS TO POTENTIALLY SHUTDOWN THE CANAL TO U-S SHIPS.

[MARCO RUBIO]

“IF THESE COMPANIES CONTROL BOTH ENDS OF THAT CANAL IN A TIME OF CONFLICT, AND THE CHINESE TELL THEM, ‘SHUT IT DOWN AND DON’T LET THE U.S GO THROUGH THERE,’ WE’VE GOT A BIG, BIG PROBLEM. A BIG ECONOMIC PROBLEM AND A BIG NATIONAL SECURITY AND DEFENSE PROBLEM.”

[JACK AYLMER]

MULINO’S PROMISE COMES AS PRESIDENT DONALD TRUMP CONTINUES TO PUSH FOR A U-S TAKEOVER OF THE PASSAGEWAY AND CONTINUED THAT PUSH SUNDAY.

[DONALD TRUMP]

WHAT THEY’VE DONE IS TERRIBLE. THEY VIOLATED THE AGREEMENT AND THEY’RE NOT ALLOWED TO VIOLATE THE AGREEMENT. CHINA IS RUNNING THE PANAMA CANAL THAT WAS NOT GIVEN TO CHINA, THAT WAS GIVEN TO PANAMA, FOOLISHLY, BUT

THEY VIOLATED THE AGREEMENT AND WE’RE GOING TO TAKE IT BACK OR SOMETHING VERY POWERFUL IS GOING TO HAPPEN.

[JACK AYLMER]

MULINO HAS REPEATEDLY SAID PANAMA WILL NOT RELINQUISH CONTROL OF THE CANAL TO THE U-S OR ANY OTHER COUNTRY.

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FOR STRAIGHT ARROW NEWS– I’M JACK AYLMER.