U.S. Secretary of State Emphasizes Need for Change in Panama Canal Management

On Sunday, U.S. Secretary of State Marco Rubio met with President Jose Raul Molino and Foreign Minister Javier Martinez Acha in Panama City to discuss major regional and international issues. According to the U.S. State Department, Rubio told Molino that Central America must immediately end China's influence over the Panama Canal, or it will face retaliatory actions from the United States. In his meeting with his Panamanian counterpart, Rubio reiterated the Trump administration's determination to change the management of the Panama Canal and protect U.S. interests under the existing contract. The potential disruption of U.S. maritime access to areas around the Panama Canal due to the presence of Chinese companies in this crucial waterway has been highlighted as a concern by President Donald Trump. Rubio's tour of Central American and Caribbean countries indicates Washington's desire to counter Beijing's increasing diplomatic influence in Latin American countries. Panama is the destination for Marco Rubio's first official foreign trip as U.S. Secretary of State. Before Rubio's trip, the organization 'United Against a Nuclear Iran' issued a statement urging the Panamanian government to immediately and verifiably stop registering flags for Iranian oil tankers. According to this U.S.-based organization, about 20% of the 477 ships in the so-called 'ghost fleet,' which circumvent U.S. sanctions, operate under the Panama Maritime Authority's flag. This situation has made Panama the largest registrant of vessels associated with the Islamic Republic's oil smuggling. It is unclear from the U.S. State Department's statement whether Marco Rubio discussed this issue with Panama's leaders.