Panama to end key canal deal with China
What's the story
Panama's President Jose Raul Mulino has announced that the country will not renew its 2017 memorandum of understanding with China.
The decision, which pertains to the Belt and Road initiative, was taken after a meeting with US Secretary of State Marco Rubio.
Rubio urged Panama to distance itself from Beijing to maintain its sovereignty over the strategically important Panama Canal during their discussion.
Security threat
US expresses concerns over China's influence on Panama Canal
The 51-mile Panama Canal, which connects the Pacific Ocean and the Caribbean Sea, has been a bone of contention between the US and China.
US President Donald Trump expressed concerns over China's increasing influence over the vital canal, viewing it as a possible threat to US national security.
He warned that if Panama continued to align with China, the US might take control of the canal.
Legislative action
US proposes legislation to regain control of Panama Canal
Addressing these concerns, House Republicans have proposed a bill called the Panama Canal Repurchase Act. The legislation would allow the US to buy back control of the canal from Panama.
Representative Dusty Johnson backed the move, calling China's influence a cause for concern and noting that over 10,000 ships pass through the canal every year, bringing in billions in tolls.
Diplomatic talks
Panama proposes talks with US, offers cooperation on migration
Despite escalating tensions, Mulino has proposed technical-level talks with the US to address these concerns.
He assured that there is no immediate threat to treaty validity or military intervention from the US.
Along with this, Mulino offered cooperation on migration issues, aligning with Trump's administration priorities and demonstrating a willingness for a diplomatic resolution.
Public unrest
Rubio's visit to Panama sparks protests
Rubio's visit to Panama was met with protests in Panama City, where demonstrators voiced their opposition to US interference in their nation's affairs.
Protesters chanted against Rubio and burned his effigy as police intervened, firing tear gas.
The canal was under joint American-Panamanian control from 1977 to 1999. Before that, going back to the early 20th century, the canal was under US control.