Panama Rejects Belt and Road Initiative

Panamanian President José Raúl Mulino announced Sunday that his country will not renew its agreement with China’s Belt and Road Initiative (BRI). His decision followed a meeting with U.S. Secretary of State Marco Rubio.

U.S. Concerns Over the Panama Canal

Former President Donald Trump has accused Panama of violating the treaty established by President Jimmy Carter, citing excessive canal fees and growing ties with China. Currently, Chinese companies manage ports near the Panama Canal, a key waterway under U.S. control until 1999.

After the meeting in Panama City, Mulino told reporters the agreement was up for renewal in one to two years but hinted at ending it sooner. This shift deals a major blow to China’s influence in Latin America, as Panama was the first country in the region to join the BRI.

U.S. Pressure and Potential Consequences

Rubio warned that China’s involvement in the canal threatens its security and violates the Panama Canal Treaty. “This status quo is unacceptable,” stated State Department spokesperson Tammy Bruce, adding that the U.S. would take necessary steps to protect its treaty rights.

Trump reaffirmed that the U.S. will reclaim control of the canal if violations persist. He also condemned Panama’s high tolls on U.S. Navy and commercial vessels, calling them an unfair burden given America’s past support. Some canal fees exceed $500,000 per vessel, depending on size and cargo.

Military Action Not Ruled Out

Trump did not dismiss military action if Panama continues its relationship with China’s Communist Party. His statement made it clear: “This blatant exploitation will end immediately.”