Just weeks after taking office, President Donald Trump successfully convinced Panama to shift its foreign policy, bringing the Panama Canal firmly under Washington’s influence.
This change followed an official visit from Secretary of State Marco Rubio, who played a key role in convincing the Panamanian government to push China aside.
On February 3, President José Raúl Mulino announced that Panama would withdraw from Beijing’s Belt and Road Initiative, signaling a new direction in the country’s international relations.
Rubio’s Visit: Strengthening Ties with the US
On February 2, Secretary of State Marco Rubio traveled to Panama for official talks.
President Mulino described the discussions as respectful and positive, emphasizing that no threats were made concerning the Panama Canal’s control.
The main goal of these negotiations, Mulino noted, was to attract more American investments into Panama, signaling a shift towards closer ties with the US.
Rubio emphasized Washington’s concerns about China’s growing influence in the region, making it clear that the US would not tolerate the status quo regarding the Panama Canal.
Even before Rubio’s visit, US officials had raised alarms about China’s increasing presence, with the US House of Representatives even proposing an initiative to purchase the canal.
These factors combined to push Panama toward reconsidering its alignment.
Trump’s Bold Statement: Taking Back the Canal
On February 3, President Trump addressed the situation, stating that the Panama Canal issue would be resolved without the use of military force.
He voiced his disapproval of China’s involvement, saying, “China’s running the Panama Canal… it was not given to China…
But they violated the agreement and we’re going to take it back or something very powerful is going to happen.”
Trump’s statement underlined the US’s determination to regain control over this vital waterway.
The Panama Canal: A Lifeline for Global Trade
Stretching 82 kilometers (51 miles), the Panama Canal connects the Caribbean Sea to the Pacific Ocean, providing an essential shortcut for maritime trade.
This artificial waterway cuts across the narrow Isthmus of Panama, allowing ships to bypass the long and dangerous route around the southern tip of South America.
Ships navigate through locks at either end, lifting them to the artificial Gatun Lake, 26 meters (85 feet) above sea level.
Since its opening in 1914, the Panama Canal has played a critical role in global trade, making shipping more efficient and reducing travel time and costs.
However, challenges such as droughts that lead to low water levels threaten its functionality.
Despite these issues, the canal remains a monumental engineering achievement, continuing to shape global commerce and contributing to economic growth worldwide.
What Lies Ahead for Panama and the Canal?
With Panama’s shift in foreign relations and the ongoing pressure from the US, the future of the Panama Canal is now in question.
Panama’s next steps will be closely watched, as decisions made in the coming months will determine the region’s geopolitical landscape and the canal’s place in international trade.