After Rubio’s Visit, Panama’s President Announces End to Major China Economic Deal

In a significant geopolitical shift, Panamanian President José Raúl Mulino announced that Panama will not renew its 2017 memorandum of understanding with China's Belt and Road Initiative (BRI). This decision follows a meeting with U.S. Secretary of State Marco Rubio, who conveyed President Donald Trump's concerns regarding China's growing influence over the Panama Canal.

Key Points:

• Non-Renewal of BRI Agreement: President Mulino stated that the memorandum, set to expire in 2026, will not be renewed. He also mentioned the possibility of terminating the agreement earlier, emphasizing Panama's commitment to reassessing its foreign partnerships.

• U.S. Ultimatum: Secretary Rubio delivered a clear message from President Trump, asserting that the current level of Chinese involvement in the canal's operations is unacceptable. He warned that if Panama does not take immediate steps to reduce China's presence, the U.S. may consider measures to protect its interests under the longstanding neutrality treaty governing the canal.

• Panama's Sovereignty Affirmed: Despite U.S. pressure, President Mulino reaffirmed Panama's sovereignty over the canal, stating that its control is not up for negotiation. He proposed technical discussions with the U.S. to address specific concerns, aiming to balance national interests with international partnerships.

The Panama Canal, a critical conduit for global maritime trade, has seen increased Chinese investment in surrounding infrastructure in recent years. The U.S. administration views this as a potential threat to the canal's neutrality and, by extension, to American strategic interests. The 1977 treaty between the U.S. and Panama ensures the canal's neutrality, with provisions allowing U.S. intervention if the canal's operations are compromised.

This development underscores the Trump administration's broader strategy to counter China's global influence, particularly in regions of strategic importance. The decision by Panama to distance itself from the BRI may signal a realignment of alliances in Latin America, as nations navigate the complex dynamics between major world powers.

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