Panama's Strategic Shift

In a significant move, Panamanian President Jose Raul Mulino announced on Sunday that Panama will not renew its participation in China's Belt and Road Initiative (BRI). This decision was made after a crucial meeting with US Secretary of State Marco Rubio, where discussions centered around Panama's sovereignty, security, and economic ties with the United States.

US Concerns Over Chinese Influence

The US State Department revealed that Secretary Rubio expressed concerns over China's growing influence in the region, particularly around the Panama Canal. Rubio emphasized that President Donald Trump views this as a potential breach of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal. He warned of possible US actions to safeguard its treaty rights if the situation does not change promptly.

Panama's Stance on Sovereignty

President Mulino, however, firmly stated that Panama's control over the canal is absolute and non-negotiable. He downplayed fears regarding Chinese influence and mentioned an ongoing audit of two ports operated by Chinese companies. The findings of this audit could lead to further decisions regarding these operations.

Strengthening US-Panama Relations

Both leaders also agreed to enhance cooperation on several fronts, including regional security, combating illegal migration through the Darien Gap, and boosting investment opportunities for US businesses in Panama.