In a significant geopolitical shift, Panamanian President José Raúl Mulino announced that Panama will withdraw from China’s Belt and Road Initiative (BRI) following discussions with U.S. Secretary of State Marco Rubio. This decision underscores the Trump administration’s efforts to counter China’s influence in strategic regions.
During their meeting in Panama City, Rubio conveyed President Donald Trump’s concerns regarding China’s involvement in the Panama Canal, suggesting it could violate the canal’s neutrality treaty. He emphasized that the U.S. might take action if Panama did not address the issue.
In response, President Mulino stated that Panama would not renew the 2017 memorandum of understanding with China concerning the BRI. He also indicated that the government would assess the possibility of terminating the agreement ahead of its scheduled expiration.
The leaders also discussed enhancing fair competition for U.S. businesses and Panama’s support for a democratic Venezuela. Rubio expressed gratitude for the productive dialogue and reaffirmed the U.S. commitment to strengthening bilateral relations.
This development reflects the evolving dynamics in U.S.-Panama relations and highlights the broader strategic competition between the U.S. and China in Latin America.