On Sunday, Panamanian President Jose Raul Mulino announced that the country will not be renewing its agreement with China’s Belt and Road Initiative. This came after a meeting with U.S. Secretary of State Marco Rubio, and appears to be a “bending the knee” moment as President Donald Trump has accused Panama of violating the terms of former President Carter’s treaty – citing unfair canal fees and their growing relationship with China.
After meeting with Rubio. Mulino announced that while the agreement is not due for renewal for another year or two, he is going to study it to see “whether it can be finished earlier or not.”
🚨BREAKING: Panama's President has ended the country's Panama Canal deal with China, immediately following a meeting with U.S. Secretary of State Marco Rubio.
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The announcement provides a massive blow to China’s influence in the Western Hemisphere, as Panama will be the first Latin American nation to lead the Belt and Road Initiative. The ambitious Chinese project has long been aimed at reestablishing the Silk Road, a network of trading routes between the East and the West. Beijing builds infrastructure in nations that sign on, oftentimes giving the Chinese government control over the economies and national security interests of developing nations.
Chinese businesses operate ports near the Panama Canal, while Panama was the first Latin American nation to join the Belt and Road Initiative. The canal was built and operated by the U.S. until 1999, when it was transferred to Panama under a treaty negotiated by former President Jimmy Carter in the late 1970’s.
During the highly anticipated meeting, Rubio warned Mulino that China’s presence in Panama represented a threat to the waterway and violates the terms of the Panama Canal treaty. “Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” State Department spokesperson Tammy Bruce told Reuters.
During his inauguration speech in January, Trump declared that the United States would be retaking control of the Panama Canal if the treaty violations are not addressed.
He wrote on Truth Social shortly after his re-election in November, “The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security. A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports. The United States is the Number One user of the Canal, with over 70 percent of all transits heading to, or from, U.S. ports.”
“It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete ‘rip-off’ of our Country will immediately stop,” Trump added.