February-2-2025
Panama — Panamanian President José Raúl Mulino has announced on February-2-2025 that his country will not renew its agreement with China’s Belt and Road Initiative (BRI), making it the first Latin American nation to exit the global infrastructure project. The decision comes shortly after a visit from U.S. Secretary of State Marco Rubio, marking a significant shift in Panama’s foreign policy.
Speaking to reporters on Sunday following Rubio’s first official foreign trip as America’s top diplomat, Mulino revealed that the agreement is set for renewal within the next one to two years. However, he indicated that his government would explore options to terminate the deal sooner.
The move is a setback for Beijing, which has long considered Panama a key strategic point in its efforts to expand influence in the Western Hemisphere. Chinese companies currently operate ports near the Panama Canal, a crucial global trade route that was under U.S. control until 1999.
Following his meeting with Mulino, Secretary Rubio emphasized Washington’s firm stance against China’s growing presence in the region. “The United States cannot, and will not, allow the Chinese Communist Party to strengthen its control over the Panama Canal area,” Rubio stated.
Panama initially joined the Belt and Road Initiative in 2017, under former President Juan Carlos Varela, shortly after the country established diplomatic ties with China. However, with the latest developments, the future of China-Panama relations remains uncertain.
