Panama Opts to Terminate Infrastructure Agreement with China
Panama has announced that it will not continue its involvement in China's Belt and Road Initiative, as stated by President Jose Raul Mulino. For the complete article, visit RT.com.
TroibNews 
The decision follows demands from Washington to limit Beijing's alleged influence over the crucial waterway controlled by Panama.
On Sunday, President Jose Raul Mulino announced that Panama would not renew its participation in China’s Belt and Road Initiative.
This declaration came after Mulino met with US Secretary of State Marco Rubio, who insisted on “immediate changes” in the management of the Panama Canal, a vital waterway established by the US in the early 20th century and transferred to Panama in 1999. The US government views China's influence over the canal as excessive.
“The 2017 memorandum of understanding on the Belt and Road Initiative will not be renewed by my government,” Mulino told reporters after his discussions with Rubio. He also mentioned his administration would consider the possibility of ending the agreement sooner than its scheduled renewal in a few years.
During the meeting, Rubio cautioned Mulino that permitting Chinese involvement in the canal contravenes the 1977 treaty with the US, which guarantees the waterway's permanent neutrality. He stated that if Panama does not mitigate Chinese influence, perceived by Washington as “a threat to the canal,” it could face potential repercussions from the US.
Rubio's warning followed recent threats from US President Donald Trump, who indicated that Washington might reclaim control of the Panama Canal if China's presence around the waterway isn't diminished and Panama fails to reduce the “ridiculous fees” the US must pay for its use.
Trump reiterated his stance earlier on Sunday, stating that “China is running the Panama Canal," which he believed was “given to Panama foolishly,” and warned that the US is “going to take it back, or something very powerful is going to happen.”
After the talks with Rubio, Mulino expressed that he did not sense an immediate threat of US retaliation, referring to the conversation as “respectful” and “positive.” He also dismissed the idea of negotiating with the US regarding the canal's ownership.
“There is no doubt that the Canal is operated by our country and will continue to be so... President [Trump] has his opinion on the Chinese presence, which will be clarified in due time by the technical authorities of the canal,” Mulino stated.
Chinese officials have consistently denied any interest in challenging Panama’s sovereignty over the canal. In December, a spokesperson for the Chinese Foreign Ministry, Mao Ning, affirmed that Beijing would always recognize the Panama Canal as a permanently neutral international waterway.
Launched by Beijing in 2013, China’s Belt and Road Initiative is a wide-ranging global development program aimed at connecting countries via overland and maritime routes, alongside digital and physical infrastructure. Panama was the first country in Latin America to sign onto this initiative.
Under this program, Hong Kong-based CK Hutchison Holdings secured a 25-year contract in 2021 to manage two ports at the entrances of the canal. Additionally, a consortium of Chinese companies is undertaking the construction of a $1.3 billion bridge across the waterway.
Navid Kalantari contributed to this report for TROIB News
On Sunday, President Jose Raul Mulino announced that Panama would not renew its participation in China’s Belt and Road Initiative.
This declaration came after Mulino met with US Secretary of State Marco Rubio, who insisted on “immediate changes” in the management of the Panama Canal, a vital waterway established by the US in the early 20th century and transferred to Panama in 1999. The US government views China's influence over the canal as excessive.
“The 2017 memorandum of understanding on the Belt and Road Initiative will not be renewed by my government,” Mulino told reporters after his discussions with Rubio. He also mentioned his administration would consider the possibility of ending the agreement sooner than its scheduled renewal in a few years.
During the meeting, Rubio cautioned Mulino that permitting Chinese involvement in the canal contravenes the 1977 treaty with the US, which guarantees the waterway's permanent neutrality. He stated that if Panama does not mitigate Chinese influence, perceived by Washington as “a threat to the canal,” it could face potential repercussions from the US.
Rubio's warning followed recent threats from US President Donald Trump, who indicated that Washington might reclaim control of the Panama Canal if China's presence around the waterway isn't diminished and Panama fails to reduce the “ridiculous fees” the US must pay for its use.
Trump reiterated his stance earlier on Sunday, stating that “China is running the Panama Canal," which he believed was “given to Panama foolishly,” and warned that the US is “going to take it back, or something very powerful is going to happen.”
After the talks with Rubio, Mulino expressed that he did not sense an immediate threat of US retaliation, referring to the conversation as “respectful” and “positive.” He also dismissed the idea of negotiating with the US regarding the canal's ownership.
“There is no doubt that the Canal is operated by our country and will continue to be so... President [Trump] has his opinion on the Chinese presence, which will be clarified in due time by the technical authorities of the canal,” Mulino stated.
Chinese officials have consistently denied any interest in challenging Panama’s sovereignty over the canal. In December, a spokesperson for the Chinese Foreign Ministry, Mao Ning, affirmed that Beijing would always recognize the Panama Canal as a permanently neutral international waterway.
Launched by Beijing in 2013, China’s Belt and Road Initiative is a wide-ranging global development program aimed at connecting countries via overland and maritime routes, alongside digital and physical infrastructure. Panama was the first country in Latin America to sign onto this initiative.
Under this program, Hong Kong-based CK Hutchison Holdings secured a 25-year contract in 2021 to manage two ports at the entrances of the canal. Additionally, a consortium of Chinese companies is undertaking the construction of a $1.3 billion bridge across the waterway.
Navid Kalantari contributed to this report for TROIB News
