The Latin American Report # 434

Marco Rubio's visit to Central America has been received with a discreet but emotional rejection in Panama, the country chosen by the Trump administration to activate the diplomatic route of the former Cuban-origin senator. Panamanian civil society is reacting to the declared intentions towards the country of Donald Trump, a president who is not mincing his words in his second stint in the White House and is squeezing hard by the neck—with the full force of U.S. power—any actor who owns something sensitive to the groups that ultimately shape his agenda, or that must move in a certain direction they have indicated.

About two hundred Panamanian citizens demonstrated against Rubio's presence and were repressed with tear gas by the security forces, who prevented them from reaching the historic center of the capital.

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Rubio stated on Sunday afternoon—via X—that, in his meeting with President José Raúl Mulino, he clarified that “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area”. The hawkish narrative is that through a Hong Kong-based consortium operating two well-located ports in the busy interoceanic waterway, Beijing has an intolerable advantage in a potential conflict. “Trump has made a preliminary determination that the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal,” warn from Foggy Bottom to the Herons Palace. However, when the 47th U.S. president first sat at the Resolute desk this dynamic that he now so passionately denounces was already a fact.

“China's running the Panama Canal. That was not given to China, that was given to Panama - foolishly - but they violated the agreement, and we're going to take it back, or something very powerful is going to happen,” Trump insisted Sunday, though he toned down the potential use of force to "take control" of the critical waterway. For the moment, although Panamanian authorities insist on the rhetoric that sovereignty is not under discussion, since Trump inserted the canal issue in his foreign policy priorities, an audit was initiated to review the 21-year-long concession granted to CK Hutchison Holdings, and today it was announced that Panama City will not renew its adhesion to China's flagship 'Belt and Road' initiative and also that the national entity running the canal will work with the U.S. Navy "to optimize the transit priority" of its vessels.

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About six years ago, then President Juan Carlos Varela promoted the Panamanian market precisely in Hong Kong and made specific reference to a project for building a fourth bridge over the canal, among others. In August 2024 this report from the Chinese Communist Party-run online newspaper presented the growing interests of COSCO Shipping Corporation Limited—a giant, state-owned Shanghai-based business—in a Free Trade Zone located at the Atlantic gateway to the canal. Concerning immigration, Mulino, who is quite close to Trump in the way he understands this phenomenon, managed to renew the commitment of the Oval Office with an initiative through which the US Treasury pays for deportation flights of migrants from Panama to certain countries.

Many see all this as a clear surrender by Mulino, which would be confirmed if we finally see China lose its space on the banks of the canal, as suggested by anonymous sources consulted by AP. So, Rubio's inaugural tour will also take him to El Salvador, Costa Rica, Guatemala and the Dominican Republic. In the first two, in particular, Chinese interests have also grown considerably in recent years, although in the case of San Jose, it has already acted in favor of the United States after pressure from the previous administration. By the way, Chinese interests have grown because China delivers, contrary to what the Secretary of State stated in his article published in WSJ, where he said that Zhongnanhai “[promises] much but [delivers] little”. Stay tuned.

Leaving the Panama Canal after Secretary Rubio’s visit, staffers for the Panama Canal Authority gave staff and reporters gift bags and thanked them for visiting. Among other items inside the bag, a “Canal de Panama” ball cap. The tag inside says, “Hecho en China.”

Made in… pic.twitter.com/vg2O2XUJzr

— Ed O'Keefe (@edokeefe) February 2, 2025

A beautiful tradition 👇.

Devotees pay homage to Afro-Brazilian sea goddess on Rio de Janeiro beach https://t.co/wgQc3JAFL9

— The Associated Press (@AP) February 3, 2025

A follow-up on tariffs´ discussion via X 👇.

Whole foods has Mexican avocados and Modelo front and center and framed as “sale”. Is this supplies that front-ran tariff threat, taking advantage of consumer hoarding instinct or having raised prices immediately to slap a sale? pic.twitter.com/vJYbxleVXP

— Rachel Ziemba (@reziemba) February 2, 2025

Don’t know if this is an immediate result of #tariffs but the bag of #avocados at #Costco jumped from $6.99 last weekend to $9.99 today. As a regular avocado shopper I’ve never seen the price be so high. #Mexico pic.twitter.com/P2WuJKYwLL

— Oscar Margáin (@OscarJournalist) February 1, 2025

And this is all for our report today. I have referenced the sources dynamically in the text, and remember you can learn how and where to follow the LATAM trail news by reading my work here. Have a nice day.

Posted Using INLEO