Sun Feb 02 15:58:57 UTC 2025: ## US Seeks to Reclaim Influence in Latin America Amidst Canal Dispute

**Panama City, February 2, 2025** – U.S. Secretary of State Marco Rubio began his first foreign trip Sunday with a visit to Panama, aiming to address escalating tensions with Latin American nations amidst President Donald Trump’s assertive foreign policy. The trip comes on the heels of significant tariffs imposed on Canada and Mexico, sparking retaliatory measures.

While Rubio’s visit is intended to foster diplomatic relations, a central point of contention is President Trump’s demand for the return of the Panama Canal to U.S. control. This demand, met with staunch resistance from Panamanian President José Raúl Mulino, has led to public protests. Mulino has explicitly stated that Panama will not negotiate ownership of the canal.

Despite this, Rubio will press for the U.S. to regain control, citing concerns about Chinese influence in the region, specifically highlighting the operation of canal port facilities by a China-based company. Rubio argues that this situation leaves the crucial waterway vulnerable to pressure from Beijing. He also plans to address issues of mass migration and drug trafficking.

While a complete transfer of ownership seems unlikely, a potential compromise involves the removal of Hong Kong-based Hutchison Ports from operating the canal. An audit into the company’s 25-year extension is currently underway, potentially leading to a rebidding process. However, it remains unclear whether the Trump administration would accept a transfer to an American or European company as sufficient.

Rubio’s trip also includes visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic. It coincides with a freeze in U.S. foreign assistance, although waivers have been approved for certain critical programs in the countries he is visiting. The specifics of these waivers are yet to be released. The Secretary of State’s visit will be closely watched as an indicator of the Trump administration’s approach to foreign policy in the region.

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