US secretary of state Marco Rubio has informed Panama’s president that the country must decrease alleged Chinese influence over the Panama Canal or face potential retaliation from America.
The remarks were made during a face-to-face meeting with Panamanian President Jose Raul Mulino on Sunday.
Follow latest: Trump ignites trade war
This was Mr Rubio’s inaugural foreign trip as America’s chief diplomat and occurred as Mr Mulino has resisted pressure from the US thus far.
Mr Trump had previously insisted that the canal be returned to US control and has consistently made allegations regarding China’s influence in the area.
The allegations about China’s influence in the canal stem from two ports on either side which are managed by publicly traded Hong Kong company CK Hutchinson.
“Secretary Rubio made it clear that this current situation is unacceptable and that without immediate changes, the United States would need to take actions to protect its rights under the treaty,” the State Department noted in a summary of the meeting.
Speaking on behalf of Mr Trump, Mr Rubio stated that the US president had concluded that China’s presence in the canal area violates a treaty that resulted in the US transferring the waterway to Panama in 1999. This treaty mandates the permanent neutrality of the American-built canal.
“I don’t see there being a genuine threat against the treaty and its validity,” Mr Mulino commented after the meeting with Mr Rubio.
Listen to Sky News Daily on your podcast app
The canal, a crucial waterway for global trade, has become a focal point for the new administration.
Mr Mulino described it as a “productive meeting” that helped to “clarify doubts”.
He acknowledged that China’s involvement in the ports at either end of the canal had raised concerns with Washington.
However, Mr Mulino stated that the consortium overseeing them was undergoing an audit and that the canal authority would provide the US official with a more detailed explanation.
He also indicated that Panama would not renew its agreement with China’s Belt and Road Initiative upon expiration.
Approximately 200 people marched in Panama City to protest during Mr Rubio’s visit, chanting “Marco Rubio out of Panama” and “long live national sovereignty”.
Some demonstrators burned a banner with images of Mr Trump and Mr Rubio.
Following the meeting, Mr Mulino suggested that his country could accept direct deportations from the US of non-Panamanian migrants who traverse the Darien Gap jungle on Panama’s southern border with Colombia.
However, he insisted that the US would have to cover the expenses.
“We discussed at length about the issue of migration, understanding that Panama is a transit point,” Mr Mulino commented after the meeting.