• Panama conducts an audit of Hutchison Ports amid U.S. claims of Chinese control over the Panama Canal.
• Trump threatens to take back the canal, accusing Panama of broken promises regarding its operation.
• Secretary of State Marco Rubio plans a diplomatic visit to Panama and other Central American countries next week.
• China and Panama firmly reject Trump's claims, emphasizing Panama's sovereignty over the canal.
• The upcoming trip may signal a renewed U.S. focus on diplomatic relations and immigration issues in the region.

Recent tensions have emerged between Panama and the United States following President Donald Trump's claims suggesting Chinese control of the Panama Canal. In his inaugural address, Trump declared, "We didn’t give it to China. We gave it to Panama, and we’re taking it back," exacerbating concerns in Panama regarding sovereignty and operational integrity of the canal, which Bacala is vital for international trade. This rhetoric has been met with firm opposition from Panamanian President José Raúl Mulino, who maintained the canal "belongs to Panama and will continue to belong to Panama" in a reaction aimed at countering Trump's accusations of overcharging American vessels while disregarding previous commitments made during its handover in 1999.

Following the mounting friction, Panama has initiated an audit of Hutchison Port Holdings, a Hong Kong company that operates two key ports at either end of the canal, to assure transparency and identify any irregularities in their compliance with the terms of their contracts. This response serves as an attempt to reclaim narrative control and reinforce its claims of independence against perceived foreign influence. Meanwhile, China has issued statements denying any operational control or influence they wield over the canal, echoing the sentiments of the Panamanian government and emphasizing the waterway's permanent neutrality.

This intense backdrop sets the stage for a pivotal visit by Secretary of State Marco Rubio, who plans to visit Panama in early February as part of his first diplomatic trip. This visit encompasses other Central American nations, including Guatemala, El Salvador, Costa Rica, and the Dominican Republic, highlighting issues such as migration and regional cooperation, matters critical to the U.S. administration's agenda. Rubio acknowledged during his confirmation hearings that concerns regarding perceived Chinese influence over the canal are legitimate, stating, “This is a legitimate issue that needs to be confronted,” suggesting a shift in U.S.-Panama relations amid geopolitical complexities.

As Rubio prepares for his diplomatic mission, the potential for renewed U.S. involvement in Panama’s affairs looms large. The visit is geared towards strengthening ties in Central America while tackling issues concerning illegal migration to the U.S. at the same time Reuters indicates that the engagement signals a serious commitment to addressing regional challenges that affect U.S. national interests.

For ongoing updates and further insight on how these dynamics unfold, refer to the original articles from SCMP, USA Today, and Newsweek.