U.S. Secretary of State Marco Rubio commenced his inaugural overseas journey on Sunday by engaging with Panama’s president. This trip comes at a time when the Trump administration is intensifying its demands on neighboring countries and allies, notably escalating calls for the United States to regain control of the Panama Canal.
Following President Trump’s recent decision to impose significant tariffs on Canada and Mexico—an action that has triggered retaliatory measures from both nations—Rubio aimed to take a more diplomatic tact during his visit. His agenda included discussions with President José Raúl Mulino, followed by a visit to an energy facility and a tour of the Panama Canal, a subject of particular interest to Trump.
Despite Trump’s expressed desire to negotiate over the canal’s control, Mulino has firmly stated that any discussions regarding ownership are off the table. There have been protests among Panamanian citizens in response to Trump’s proposals. Mulino is hopeful that Rubio’s visit will pivot toward collaborative topics, especially migration issues and efforts to combat drug trafficking.
While Rubio will address Trump’s primary concern regarding illegal immigration, he has also indicated his intention to communicate the administration’s desire to reclaim oversight of the Panama Canal. This initiative faces considerable opposition from regional leaders, particularly against the backdrop of increasing Chinese influence in Latin America.
In a recent op-ed featured in the Wall Street Journal, Rubio highlighted that mass migration, drug trafficking, and the adverse policies from countries like Cuba, Nicaragua, and Venezuela have created turmoil. He raised concerns over the management of the canal’s port facilities by a Chinese company, emphasizing the resulting vulnerabilities to influence from Beijing.
Rubio acknowledged the sensitive nature of the canal issue, noting, “The president’s been pretty clear he wants to administer the canal again. Obviously, the Panamanians are not big fans of that idea.” He emphasized that the message regarding the canal’s control has been conveyed unambiguously.
Originally constructed by the United States, the canal was handed over to Panama in 1999, and any proposal to return it is met with strong opposition from Panamanians. Although Mulino has ruled out negotiations concerning ownership, there are opinions suggesting that Panama might entertain a middle-ground solution that removes canal operations from the Hong Kong-based Hutchison Ports company, which has held a 25-year non-competitive extension for managing these operations. An ongoing audit may lead to a review process for this concession.
It remains uncertain whether Trump would consider transferring the concession to an American or European company as fulfillment of his demands, especially as those demands appear to extend beyond mere operational control.
Rubio’s diplomatic mission, which is set to include visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, occurs amid a stagnation in U.S. foreign assistance. On Sunday, the State Department indicated that Rubio had authorized exceptions for certain vital programs in the countries he would be visiting, though specifics on these waivers have not yet been disclosed.
