JUST IN, Panama Caves, Moves Away From China After Pressure From Trump

Panamanian President José Raúl Mulino made a significant announcement, revealing that Panama would not be renewing its agreement with China’s Belt and Road Initiative. This decision came after a key meeting with U.S. Secretary of State Marco Rubio and represents a notable setback for China’s expanding influence in Latin America. Panama had originally been the first country in the region to join the initiative, signaling a strong commitment to economic cooperation with China.

Rubio, during the meeting, expressed concerns that Panama’s deepening ties with China could pose a threat to the integrity of the Panama Canal Treaty. The U.S. has long maintained a strategic interest in the canal, and Rubio’s warning added weight to the growing tensions surrounding Panama’s foreign relations.

President Donald Trump has also previously voiced dissatisfaction with Panama’s dealings with China, particularly criticizing the country for what he deemed unfair canal fees. The U.S. administration has hinted at the possibility of asserting greater control over the canal if the issue of these fees and Panama’s increasingly close relationship with China isn’t addressed. Depending on the size of the vessel, tolls for transiting the canal can exceed $500,000, making the matter an area of significant geopolitical and economic interest for the United States.

Panama’s decision to step away from the Belt and Road Initiative could alter the balance of international relations in the region, potentially signaling a shift toward a stronger alignment with U.S. interests. The move reflects the complex dynamics at play, where economic partnerships, national sovereignty, and global power struggles converge, particularly in the strategically important Panama Canal.