Panama Drops Belt And Road Deal With China Amid Donald Trump's Warning, But Sends A Strong Message To US

(MENAFN- Live Mint) Panama has officially withdrawn from China's Belt and Road Initiative, saying that it will not renew the 2017 Memorandum of Understanding (MoU) to join China's overseas development initiative. In a strong message to the US, Panama also reaffirmed its sovereignty over the Panama Canal as President Jose Raul Mulino asserted that his country's sovereignty over the world's second busiest waterway is not up for discussion.

The decision of Panama to end its Belt and Road deal with China comes amid Donald Trump's warnings that the United States would take control of the Panama Canal – a vital waterway.

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“We'll study the possibility of terminating it early. I do not feel that there is any real threat at this time against the (neutrality) treaty, its validity, and much less the use of military force to make the treaty,” Jose Raul Mulino said.

“Sovereignty over the canal is not in question.”

Panama Canal was built by the US in the early 20th century and handed over to Panama in 1999. After returning to office, Donald Trump threatened to take the Canal back from Panama , claiming China's control over it.

“China's running the Panama Canal. That was not given to China, that was given to Panama, foolishly, but they violated the agreement, and we're going to take it back, or something very powerful is going to happen,” Donald Trump told reporters.

US Secretary of State Marco Rubio on Sunday, February 2, warned Panama's President that Washington will“take measures necessary” if Panama does not immediately take steps to end China's influence and control over the Panama Canal .

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