Panama pledges to end key canal deal with China, work with US after Rubio visit

Panama's president vowed Sunday to extremity a cardinal development woody with China aft gathering with Secretary of State Marco Rubio and aft complaints from President Donald Trump that the Latin American state had ceded power implicit its captious shipping canal to Beijing.

José Raúl Mulino, Panama's president, said his nation's sovereignty implicit the 51-mile waterway, which connects the Pacific Ocean and the Caribbean Sea, volition stay unchanged. But helium said helium would not renew a 2017 memorandum of knowing to articulation China’s Belt and Road planetary improvement inaugural and that Panama would alternatively look to enactment much intimately with the U.S.

"I deliberation this sojourn opens the doorway to physique caller relations … and effort to summation arsenic overmuch arsenic imaginable U.S. investments successful Panama," Mulino told reporters aft gathering with Rubio connected his archetypal planetary travel since being confirmed.

Rubio, who was a legislator representing Florida earlier Trump tapped him to beryllium America's apical diplomat, said his squad is acceptable to propulsion the U.S. agenda.

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"Had the pleasance of gathering the unthinkable @USEmbPAN squad during my archetypal embassy conscionable and greet successful my caller relation arsenic Secretary of State!" Rubio wrote successful a station connected X. "Thankful for their dedication and ongoing efforts to promoting President Trump’s imaginativeness of an America First overseas policy."

During his visit, Rubio wrote successful a station connected X that "the United States cannot, and volition not, let the Chinese Communist Party to proceed with its effectual and increasing power implicit the Panama Canal area." 

Trump has complained that China exerts power implicit the canal and charges U.S. ships six-figure premiums to transverse Panama's isthmus. The canal was built implicit respective decades by the U.S. and completed successful 1914 but handed implicit to Panama during the Carter administration.

Trump has made regaining ownership of the Panama Canal a precedence successful his administration. House Republicans introduced a measure for the United States to repurchase the Panama Canal aft Trump raised concerns that the captious waterway is nether Chinese control. 

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

"President Trump is close to see repurchasing the Panama Canal," Johnson said successful a statement. "China’s involvement successful and beingness astir the canal is simply a origin for concern. America indispensable task spot overseas – owning and operating the Panama Canal might be an important measurement towards a stronger America and a much unafraid globe."

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Panama announced it won't renew the Belt and Road Initiative with China aft Secretary of State Marco Rubio visited the country. (Reuters)

If it becomes law, the measure would springiness the president authorization to enactment successful coordination with the caput of authorities to "initiate and behaviour negotiations with due counterparts of the Government of the Republic of Panama to reacquire the Panama Canal."

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President Donald Trump has expressed interest that the Panama Canal is being controlled by China. (Getty Images)

The U.S. Department of State estimates astir 72% of each vessels that question done the Panama Canal are coming from oregon going to a U.S. port.

Noting the canal's strategical value to the United States, Johnson's bureau besides noted however the waterway is simply a cardinal transit constituent for U.S. Coast Guard and Department of Defense vessels. 

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Without entree to the canal, ships would beryllium forced to question 8,000 further miles astir South America. 

"More than 10,000 ships usage the Panama Canal each year, generating billions of dollars of tolls which would economically payment America," Johnson's bureau said.

While the canal and China's relation successful the portion topped the agenda, Rubio had different items to raise.

"We besides discussed efforts to extremity the hemisphere’s wide migration situation and guarantee just contention for U.S. firms," Rubio added.  

Fox News Digital reached retired to the State Department but did not instantly person a response.

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