PANAMA CITY: Panama’s President Raúl Mulino has declared his intention to terminate the country’s participation in China’s Belt and Road Initiative (BRI). The announcement comes shortly after a visit from U.S. Secretary of State Marco Rubio, highlighting a potential realignment of strategic partnerships in the region.
President Mulino, speaking in a televised address, confirmed that Panama would not renew its 2017 memorandum with China concerning the BRI, and suggested there might be an early termination of the agreement. This move marks Panama as the first Latin American nation to exit the expansive Chinese investment project, which has been criticized for potentially leading to debt dependency among participating countries.
Further escalating the geopolitical implications, President Mulino also announced plans to facilitate the passage of U.S. Navy vessels through the Panama Canal. This decision underscores an apparent pivot towards strengthening ties with the United States, especially in light of recent tensions over Chinese influence in Central America’s key maritime infrastructure.
The Panama Canal, a critical artery for global trade, has been at the center of international attention due to its strategic importance. The U.S. has expressed concerns over Chinese operations near the canal’s entrances, operated by a company linked to Hong Kong-based conglomerate CK Hutchison Holdings.
The president’s statements follow a meeting with Rubio where discussions reportedly touched on reducing Chinese influence in the canal region. The U.S. has been vocal about its interests in the canal, a vital route for its maritime traffic, with President Donald Trump previously stating intentions to “take back” control of the waterway.
Panama’s decision to not renew the BRI agreement and to enhance cooperation with the U.S. on naval transit reflects a broader strategic recalibration amidst global power dynamics. It also comes in the context of ongoing audits regarding Chinese business operations around the canal, which could influence future agreements and concessions.
This development is likely to stir reactions both domestically and internationally, potentially reshaping economic and security alliances in Latin America. Observers are watching closely to see how China responds to this diplomatic shift and how it might affect its broader Belt and Road strategy.
