(America First Report)—In a significant diplomatic shift, Panama’s President José Raúl Mulino announced on Sunday that the nation would not renew its agreement with China’s Belt and Road Initiative. This decision comes after a visit from U.S. Secretary of State Marco Rubio, amid concerns from President Donald Trump regarding Chinese influence over the Panama Canal.
During his meeting with Rubio, Mulino emphasized that Panama’s sovereignty over the 51-mile waterway, which links the Pacific Ocean and the Caribbean Sea, would remain intact. However, he indicated a pivot towards closer cooperation with the United States, stating, “I think this visit opens the door to build new relations … and try to increase as much as possible U.S. investments in Panama.”
This announcement follows Trump’s vocal complaints about China’s control over the canal, asserting that the U.S. had inadvertently given control to Beijing rather than Panama. Trump has criticized the high tolls charged to U.S. ships, suggesting that the canal, constructed by the U.S. and handed over during the Carter administration, should be under American oversight once again.
The backdrop to this diplomatic maneuver includes a visit by Rubio to Panama where he conveyed Trump’s concerns directly to Mulino. Rubio highlighted the U.S. stance on X, stating, “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.”
In response to these concerns, Mulino decided not to extend the 2017 memorandum of understanding that aligned Panama with China’s Belt and Road Initiative. This initiative has been a point of contention, with critics arguing it leads to economic dependency on China.
This development coincides with a broader geopolitical context where the U.S. seeks to counterbalance Chinese influence in Latin America. Rubio’s visit also touched on other critical issues like migration and ensuring fair competition for U.S. firms.
The decision by Panama not to renew with China and to look towards the U.S. for future collaborations marks a pivotal moment in the geopolitics of the region, potentially affecting global shipping routes and international trade dynamics.
Article generated from legacy media reports.
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