Panama agrees to end canal deal with China after Rubio visit

Panama’s president vowed Sunday to end a key development deal with China after meeting with Secretary of State Marco Rubio and after complaints from President Donald Trump that the Latin American country had ceded control over its critical shipping canal to Beijing.

José Raúl Mulino, Panama’s president, said his nation’s sovereignty over the 51-mile waterway, which connects the Pacific Ocean and the Caribbean Sea, will remain unchanged. But he said he would not renew a 2017 memorandum of understanding to join China’s Belt and Road global development initiative and that Panama would instead look to work more closely with the U.S.

“I think this visit opens the door to build new relations … and try to increase as much as possible U.S. investments in Panama,” Mulino told reporters after meeting with Rubio on his first international trip since being confirmed.

Rubio, who was a senator representing Florida before Trump tapped him to be America’s top diplomat, said his team is ready to push the U.S. agenda.

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“Had the pleasure of meeting the incredible @USEmbPAN team during my first embassy meet and greet in my new role as Secretary of State!” Rubio wrote in a post on X. “Thankful for their dedication and ongoing efforts to promoting President Trump’s vision of an America First foreign policy.”

During his visit, Rubio wrote in a post on X that “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.” 

Trump has complained that China exerts control over the canal and charges U.S. ships six-figure premiums to cross Panama’s isthmus. The canal was built over several decades by the U.S. and completed in 1914 but handed over to Panama during the Carter administration.

Trump has made regaining ownership of the Panama Canal a priority in his administration. House Republicans introduced a bill for the United States to repurchase the Panama Canal after Trump raised concerns that the critical waterway is under Chinese control. 

The bill, named the Panama Canal Repurchase Act, was introduced by Rep. Dusty Johnson, R-S.D., a member of the Select Committee on China and the House Transportation and Infrastructure Committee.

“President Trump is right to consider repurchasing the Panama Canal,” Johnson said in a statement. “China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe.”

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If it becomes law, the bill would give the president authority to act in coordination with the secretary of state to “initiate and conduct negotiations with appropriate counterparts of the Government of the Republic of Panama to reacquire the Panama Canal.”

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The U.S. Department of State estimates around 72% of all vessels that travel through the Panama Canal are coming from or going to a U.S. port.

Noting the canal’s strategic importance to the United States, Johnson’s office also noted how the waterway is a key transit point for U.S. Coast Guard and Department of Defense vessels. 

Without access to the canal, ships would be forced to travel 8,000 additional miles around South America. 

“More than 10,000 ships use the Panama Canal each year, generating billions of dollars of tolls which would economically benefit America,” Johnson’s office said.

While the canal and China’s role in the region topped the agenda, Rubio had other items to raise.

“We also discussed efforts to end the hemisphere’s mass migration crisis and ensure fair competition for U.S. firms,” Rubio added.  

Fox News Digital reached out to the State Department but did not immediately receive a response.

Fox News Digital’s Danielle Wallace contributed to this report.

Stepheny Price is writer for Fox News Digital and Fox Business. Story tips and ideas can be sent to [email protected]