Key Developments in Panama-US Relations
Free Passage for US Warships
Panama has promised free passage for US warships through the Panama Canal. This assurance was given following a visit by US Secretary of State Marco Rubio, who raised concerns about Chinese influence in the region.
Withdrawal from China's Belt and Road Initiative
- Panama announced it will not renew its participation in China's Belt and Road Initiative.
- This makes Panama the first Latin American country to consider withdrawing from the program.
- The current agreement is set to end in 2026, and the decision is seen as a positive step by the US.
US Concerns and Diplomatic Engagements
- President Trump has criticized Panama for "exorbitant" toll rates charged to US Navy and commercial ships.
- Trump has threatened to retake control of the canal if conditions do not change.
- Panama’s President Jose Raul Mulino assured that US Navy vessels would have free passage, though tensions remain over the canal's management.
Historical Context
- The Canal was originally built by the US in the early 20th century and ceded back to Panama in 1999 under a treaty signed by President Jimmy Carter in 1977.
- Trump has criticized the treaty as a mistake.
China's Influence in Panama
- A previous Panamanian government recognized "only one China," severing ties with Taiwan in 2017.
- China's influence in the region is significant, with Hong Kong's CK Hutchison Holdings Ltd. operating two of the five ports adjacent to the canal.
Migration and Regional Security
- Discussions between Rubio and Mulino also addressed migration issues through the Darien Gap, noting a 94% decrease in illegal crossings.
- Mulino offered an airstrip for repatriation proceedings to manage migration better.
Marco Rubio's Diplomatic Trip
- Rubio's visit to Panama was part of a six-day trip through Central America, including El Salvador, Costa Rica, Guatemala, and the Dominican Republic.
- This was Rubio's first foreign trip as the top US diplomat.
