Panama has announced it will not renew its agreement with China’s Belt and Road Initiative, signaling a shift in its foreign policy and trade relations. This decision follows a meeting between U.S. Secretary of State Marco Rubio and Panamanian President José Raúl Mulino, during which Rubio expressed concerns over China’s influence in the Panama Canal area and suggested potential U.S. action if the situation remained unchanged.
In response, President Mulino emphasized Panama’s sovereignty over the canal and stated that while the country would review Chinese business agreements, it does not perceive a significant threat to the canal’s neutrality. He also indicated a willingness to increase U.S. investment in Panama, aiming to strengthen bilateral ties.
This development comes amid heightened U.S. scrutiny of China’s global infrastructure projects and their potential strategic implications. The Panama Canal, a critical conduit for international maritime trade, has been a focal point in discussions about China’s expanding global influence
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