PANAMA CITY, Panama (Diya TV) — Panama will not renew its 2017 agreement with China’s Belt and Road Initiative, President Jose Raul Mulino announced Sunday, following a meeting with U.S. Secretary of State Marco Rubio.
This decision comes amid growing pressure from the Trump administration which has threatened to warn Panama regarding Chinese influence over the Panama Canal. Mulino confirmed the move after he met with Rubio, marking a shift in the foreign policy approach of Panama.
“I think that this visit opens the door for the establishment of a new stage of relations,” Mulino told reporters. “At the same time, we will try to increase U.S. investments in Panama as much as possible.”
While the Panamanian leader insisted his country’s sovereignty was not up for debate, he acknowledged U.S. concerns over China’s presence near the vital waterway. Mulino said Rubio did not explicitly threaten U.S. intervention but made clear that Washington was closely watching Chinese involvement in Panama.
Trump has repeatedly criticized Panama’s ties with China and hinted at the possibility of reasserting U.S. control over the canal, which was handed over to Panama in 1999. The move to distance Panama from Beijing suggests Mulino is responding to Washington’s warnings.
Rubio’s trip to Panama was his first foreign visit as the top U.S. diplomat. During their discussions, he reportedly urged Mulino to take immediate steps to limit Chinese investments in the region or risk potential economic consequences.
Mulino’s decision to terminate the Belt and Road agreement marks a significant shift in Panama’s global alliances as the country strengthens ties with the United States.
