Panama President José Raúl Mulino said that the country would not renew its 2017 MoU with China to join its Belt and Road initiative after US Secretary of State Marco Rubio gave an ultimatum to the nation to distance itself from Beijing.

US Secretary of State Marco Rubio has demanded that Panama make "immediate changes" to what he calls the "influence and control" of China over the Panama Canal. America's top diplomat said Panama must act or the US would take necessary measures to protect its rights under a treaty between the two countries.

Panama City, Panama - 02, 2025 Panamanian President José Raúl Mulino said Sunday that in his meeting with US Secretary of State Marco Rubio, he told him that “ the sovereignty of Panama is not in dispute”.

Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino in Panama over the weekend, State Department spokesperson Tammy Bruce said in a readout of their meeting.

Panamanian President José Raúl Mulino sought to reconcile with the US during a meeting with Secretary of State Marco Rubio.

U.S. Secretary of State Marco Rubio gestures after being welcomed by Panama's Foreign Minister Javier Martinez-Acha upon his arrival at the presidential palace in Panama City, Panama February 2, 2025.

President José Mulino said Panama's sovereignty over the world's second busiest waterway is not up for discussion.

U.S. Secretary of State Marco Rubio warned Panama’s President Jose Raul Mulino that Washington will 'take necessary measures' if Panama doesn’t act to curb China’s influence over the Panama Canal.