U.S. and Panama Clash Over Canal Ownership

Learn how the United States is escalating its showdown with Panama in a fierce battle over ownership of the renowned canal.
Panama: A New Geopolitical Chessboard
Panama is poised to become a major conflict zone, rivalling China and the Middle East. U.S. Secretary of State, Marco Rubio, has threatened with “measures” against Panama if it does not make “immediate changes” concerning the Panama Canal.
Meanwhile, Panama’s President, José Raul Mulino, has called for “technical” discussions with the United States while dismissing the potential for military intervention.
The United States on the Offensive
Since taking office, Donald Trump has expressed a desire to “retake” control of the canal to counteract China’s influence.
State Department spokesperson, Tammy Bruce, stated that during his meeting with President Mulino, Marco Rubio emphasized that “the current position of influence and control by the Chinese Communist Party over the Panama Canal zone poses a threat to the canal and violates the treaty concerning its permanent neutrality and operation.”
Panama: Between Resistance and Concessions
In response to these pressures, Panama has decided not to renew the memorandum of understanding on the country’s participation in China’s global infrastructure project, known as the “Belt and Road Initiative.”
Signed in 2017, this memorandum made Panama the first country in the region to join Beijing’s program. Additionally, José Raul Mulino has proposed “technical” level discussions with the United States to address Donald Trump’s concerns.
A Chinese Threat to the United States?
The Panama Canal, a crucial maritime route connecting the Atlantic and Pacific Oceans, is strategically important for the United States, with 40% of its container traffic passing through.
For Washington, China’s growing influence around the canal is seen as a threat to American interests and could potentially allow Beijing to block this strategic maritime route in the event of conflict.