THE HEAT is on in Panama as United States Secretary of State Marco Rubio has arrived in the central American country to discuss ownership of the Panama Canal.

The US Department of State (DoS) confirmed that Mr Rubio has met with Panamanian President José Raúl Mulino and Foreign Minister Javier Martínez-Acha in Panama City to address “critical regional and global challenges”.

The Secretary informed President Mulino and Minister Martínez-Acha that the current status quo regarding the canal is unacceptable, and that absent immediate changes, it would require the US to take measures necessary to protect its rights under the Treaty.

The secretary informed the President and Minister that US President Trump has made a preliminary determination that the current position of influence and control of the Chinese Communist Party (CCP) over the Panama Canal area is a threat to the canal and represents a violation of the canal’s neutrality.

The meeting comes after President Trump criticised the current status quo of the Panama Canal’s operation, claiming China is operating the waterway, which sees 14,000 ships cross per year, and that the US “is taking it back”.

Following talks with Mr Rubio, President Mulino signaled he would review agreements involving China and Chinese businesses, and announced further cooperation with the US on migration, while reaffirming that Panama’s sovereignty over the canal is not up for discussion.

President Mulino signaled that a key 25-year concession to Hong Kong-based CK Hutchison Holdings, renewed in 2021 for the operation of ports at both entrances of the canal, would be part of the review, pending the results of an audit.

Moreover, an agreement between Panama and China for contribution to China’s Belt and Road initiative, under which the Asian country expanded investment in Panama during previous administrations, will not be renewed, President Mulino said.

“We’ll study the possibility of terminating it early,” President Mulino said.

“I do not feel that there is any real threat at this time against the (neutrality) treaty, its validity, and much less the use of military force to make the treaty.”

The DoS said Mr Rubio also emphasised the importance of collaborative efforts to end the hemisphere’s illegal migration crisis and thanked President Mulino for his support of a joint repatriation program, which it said has reduced illegal migration through the Darien Gap.

The Secretary underscored the desire for an improved investment climate and ensuring a level playing field for fair competition by US firms, and also praised President Mulino’s regional leadership in support of a democratic, free Venezuela.

Secretary Rubio noted the meeting marks an important step in reinvigorating the strategic relationship between the United States and Panama, in line with President Trump’s vision.

The visit comes after President Trump announced the implementation of a 25% tariff on imports from Mexico and Canada, as well as a 10% additional tariff on China.