President Jose Raul Mulino has stated that there is currently no serious threat to the Panama Canal Treaty or any indication of a potential forceful takeover by the US.

US Secretary of State Marco Rubio warned Panama of potential consequences unless steps were taken to reduce Chinese influence over the canal. However, Mulino expressed confidence that the US would not resort to invasion and suggested dialogue instead.

During Rubio’s visit, he conveyed President Donald Trump’s position that Panama had violated the treaty which transferred the canal back to the country in 1999. Rubio cited China’s growing control as a significant concern, given that 40% of US container traffic passes through the canal.

State Department spokesperson Tammy Bruce indicated that Rubio emphasised the necessity for immediate changes, warning of US measures if the situation remained unchanged.

Despite the stern message, Mulino described the meeting in less dramatic terms, welcoming Rubio at his official residence and later dismissing any immediate threats to the treaty or Panamanian sovereignty. He proposed technical talks to address US concerns.

In recent years, the canal region has witnessed a rise in US-bound migrants, prompting Mulino to suggest that expanded agreements could facilitate deportations from Venezuela, Colombia, and Ecuador.

Protests and Tensions

Rubio’s visit sparked protests in Panama City, with demonstrators burning an effigy of the diplomat and chanting demands for his departure. Police dispersed the crowd with tear gas.

Union leader Saul Mendez criticised Rubio as a “messenger” for US interests, asserting Panama’s sovereignty.

In response to mounting pressure, Mulino ordered an audit of a Hong Kong-based company controlling ports at both ends of the canal.

Nevertheless, President Trump remained dissatisfied, hinting at reclaiming control of the canal. He described the canal as a “modern wonder of the world,” built by the United States at significant human cost, particularly to Caribbean workers.

The canal was originally under US control from its opening in 1914 until it was handed over in 1999 following a treaty brokered by former President Jimmy Carter, who viewed the transfer as a moral obligation.