Donald Trump isn’t one to back down from a fight. In fact, he’s usually the last one standing.
And the Trump admin strong-arms this country into making a deal that no one was expecting.
Panama Rejects Renewal of China’s Belt and Road Agreement Following Talks with Rubio
Panama has officially opted out of renewing its agreement with China’s Belt and Road Initiative (BRI) following discussions between U.S. Secretary of State Marco Rubio and Panamanian President José Raúl Mulino.
The decision marks a significant shift in Panama’s foreign relations and economic strategy, moving away from Beijing’s global infrastructure project.
Mulino confirmed on Sunday that Panama would not extend the agreement, according to Baha Breaking News. His announcement came after a meeting with Rubio during the Secretary of State’s visit to the Central American nation.
Panama was the “first Latin American country to sign onto” the BRI in 2018, a year after severing diplomatic ties with Taiwan, according to reports from the New York Times.
As the Times noted, “In 2017, China scored a major victory when Panama cut diplomatic ties with Taiwan, the self-governing island that China claims as its territory, and recognized Beijing instead. Panama had been one of the few countries worldwide to recognize Taiwan as a sovereign state. The following year, Panama became the first Latin American country to sign onto the Belt and Road Initiative, the Chinese leader Xi Jinping’s signature global infrastructure program, which is aimed at enlarging China’s geopolitical heft and countering American influence.”
During their discussions, Rubio and Mulino covered key topics related to “Panama’s sovereignty, security, and economic relations” with the United States.
According to Baha Breaking News, Rubio “informed Mulino that President Donald Trump see’s China’s influence over the Panama Canal as a potential violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.” Mulino, however, made it clear that “Panama’s control over the canal was non-negotiable.”
While dismissing concerns over Chinese influence, Mulino also revealed that an audit is underway regarding two Chinese-operated ports. He hinted that Panama might make additional policy adjustments depending on the audit’s findings.
The two leaders further agreed to expand cooperation on regional security, reduce illegal migration through the Darian Gap, and encourage greater investment from U.S. companies.
According to Reuters, Mulino also confirmed that “a broad agreement between Panama and China to contribute to China’s silk road program” would not be renewed. Furthermore, he suggested that an early termination of the agreement is under consideration, stating, “We’ll study the possibility of terminating it early.”
A press release from State Department spokesperson Tammy Bruce reiterated Rubio’s message to Mulino, stating that Trump had determined China’s “position of influence and control” over the Panama Canal posed “a threat to the canal.”
News of Panama’s decision drew swift reactions from U.S. officials and foreign policy analysts. Many viewed it as a significant geopolitical win for the United States.
“This is a huge win for America,” wrote Michael Sobolik, a senior fellow at the Hudson Institute, in a post on X.
Trump’s National Security Advisor, Mike Waltz, echoed the sentiment, calling it a “Step in the right direction.”
Meanwhile, Sen. Mike Lee (R-UT) took a more direct jab at Beijing, writing, “Buh bye, China. Keep your Belt and Road out of the Americas.”
Panama’s move signals a shift in Latin America’s approach to Chinese investments and influence. With concerns mounting over Beijing’s strategic foothold in critical infrastructure worldwide, this decision could have ripple effects across the region and the United States.
Stay tuned to the Conservative Column.
