ALBAWABA- Panama’s President Jose Raul Mulino has rejected a U.S. State Department statement asserting that U.S. government ships can transit the Panama Canal without paying fees, calling it "unacceptable."
His remarks come amid rising tensions between Washington and Beijing over influence in the strategic waterway.
Three days prior, U.S. Secretary of State Marco Rubio visited Panama and warned that failure to curb China’s influence over the canal would prompt U.S. action.
Following talks with Rubio, Mulino announced Panama’s withdrawal from China’s Belt and Road Initiative and signaled a review of agreements involving Chinese businesses.
However, he firmly stated that Panama’s sovereignty over the canal is not up for discussion.
According to U.S. State Department spokesperson Tammy Bruce, Rubio conveyed President Donald Trump’s concerns that China’s presence—through a Hong Kong-based company operating ports near the canal’s entrances—poses a security threat and violates the U.S.-Panama treaty.
"Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take necessary measures to protect its rights under the Treaty," Bruce stated.
Despite increasing U.S. pressure, Panama has committed to deeper cooperation with Washington on migration while standing firm on maintaining full control over the world’s second-busiest waterway.
