Despite a US State Department announcement claiming free transit for US government vessels through the Panama Canal, the Panama Canal Authority denies any toll adjustments. This contradicts earlier statements by Secretary of State Marco Rubio suggesting Panama offered concessions following pressure from President Trump, who has threatened force to secure access. Panama has refuted accusations of Chinese influence over the canal, but withdrew from China’s Belt and Road Initiative to address US concerns. Further talks between the US and Panama are scheduled.
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President Trump threatened “powerful” US action against Panama over China’s influence near the Panama Canal, vowing to “take it back.” Following a meeting between US Secretary of State Rubio and Panamanian President Mulino, Panama agreed to end its participation in China’s Belt and Road Initiative and is auditing a Chinese-linked port company. Mulino asserted Panama’s sovereignty over the canal, while also expressing willingness to increase US investment and collaborate on migrant repatriation, with the US covering all costs. The 1977 treaty allows US intervention if the canal’s operation is disrupted, though Mulino downplayed the risk of US military action.
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