Panama Will Not Renew The Memorandum On The 'Silk Road' With China

(MENAFN- Newsroom Panama)

Panama will not renew the memorandum of understanding, called The Silk Road (pictured above), and signed with China in November 2017, under the administration of former President Juan Carlos Varela (2014-2019). This was confirmed by President José Raúl Mulino, after his meeting with Secretary of State Marco Rubio and representatives of the US government. For his part, Rubio – in a message posted on his social Network – made it clear that“the United States cannot and will not allow the Chinese Communist Party to continue its effective and growing control over the Panama Canal area. We also discussed efforts to end the hemisphere's mass migration crisis and ensure fair competition for American companies.”

The memorandum promoted the“Silk Road Economic Belt” pictured above and the“21st Century Maritime Silk Road” pictured below, between the two countries, with the aim of promoting the exchange of goods, technology, capital and personnel. In addition to“....improving policy coordination and deepening mutually beneficial and practical cooperation, and mutual learning among civilizations.” According to paragraph II of the memorandum, both China and Panama would cooperate in policy communication, infrastructure connection, trade flow, circulation of funds and the union of the wills of the people. The memorandum, according to its terms, is renewable every three years and is automatically extended for another three years unless terminated by either party. From this point, the memorandum has been renewed twice: 2020 and 2023. It is not yet known when Mulino will notify the Chinese government of his decision to abandon the memorandum.

Trump Insists on 'Recovering the Canal' or Something 'Very Powerful will Happen'

“I don't think troops are necessary in Panama,” the US president said. US President Donald Trump on Sunday, February 2, reiterated his threats to“take back the Panama Canal” for national security reasons and reiterated that China would be controlling the waterway, amid a visit to the country by Secretary of State Marco Rubio. According to Trump, who spoke to American media in Washington, the United States will either take back the canal or“something very powerful will happen.” “It was handed over to Panama, but they violated the agreement... I don't think the troops are needed in Panama. What Panama has done is terrible for the financial security of this part of the world,” he said. He reiterated that the“Canal” is not for China and assured that in Panama 70% of the signs on the Panama Canal are written in Chinese.

Crew Members on a Container Ship Wave Chinese and Panamanian Flags

“Violating the agreement is not allowed. China is managing the Panama Canal,” he added. It is not yet known whether Trump has communicated with Rubio about the meetings the Secretary of State held with Panamanian authorities which were very friendly and cordial, along with his visit to the Panama Canal locks on Sunday, February 2. In the afternoon, the Canal Authority informed the Secretary of State of its commitment to work together with the U.S. Navy to“optimize the priority of transit of its vessels” through the interoceanic waterway.

Panama will open Technical Dialogue with the United States to Clarify Trump's Doubts about the Canal

The President of the Republic, José Raúl Mulino, announced that he has opened considerations for the technical team of the Panama Canal to hold talks with the United States, with the aim of clarifying any concerns of the American president Donald Trump about his accusations of an alleged influence of the Chinese government on the interoceanic route. Mulino's statements were made during his meeting with Secretary of State Marco Rubio, which he described as“highly respectful and cordial.” He also revealed that he will wait for the audits of the Panama Ports Company (PPC), which began on January 20, to be completed, since in his opinion, he believes that“everything related to the alleged Chinese presence in the Canal is more related to the port issue.” For his part, Rubio made it clear in a press release issued after the meeting that“this status quo is unacceptable and that, in the absence of immediate changes, it would require the United States to take the necessary measures to protect its rights under the Treaty.” Rubio's visit comes after more than a month of diplomatic tensions between the two nations, after Trump expressed last December his intention to regain control of the Panama Canal, alleging alleged Chinese influence in the administration of the maritime route and the toll rates for using the waterway.

Marco Rubio visits the Miraflores Locks of the Panama Canal; ACP will Optimize 'the Priority in the Transit of its Ships'

U.S. Secretary of State Marco Rubio, with Panama Canal Administrator Ricaurte Vásquez.

On Sunday, February 2, U.S. Secretary of State Marco Rubio visited the Miraflores Visitor Center of the Panama Canal. The tour of the interoceanic waterway lasted about 25 minutes. Rubio arrived from the province of Colón after a brief visit to the AES Company. Upon his arrival at the center, at 5:15 pm, he was received by the administrator of the waterway, Ricaurte Vásquez. They exchanged greetings and the manager immediately took him to the control tower of the Miraflores locks.

There, Vásquez gave him a brief explanation about how the waterway works, among other details. In a statement, the Canal Authority said it had informed Secretary Rubio of its willingness to work with the US Navy to optimize priority for the transit of its vessels through the waterway. Rubio wanted to greet Edwin Miranda, a guide with 23 years of service at the Canal, who assisted him during his visit in 2018 when he was a senator.

Rubio left the Canal around 5:40 p.m. as the Secretary of State concluded his official agenda for this Sunday. The Canal Authority informed Rubio that it would“optimize the priority of the transit of its vessels.

The agenda of Marco Rubio, Secretary of State of the United States, included a visit to the facilities of the AES Panama power plant in Colón as pictured above, a company with American capital. During his visit, Rubio toured the liquefied natural gas (LNG) storage and regasification terminal and its power generation plant, both supplied with natural gas from the United States. Rubio's visit to Panama comes amid Donald Trump's threat to“regain” U.S. control of the Panama Canal over China's growing influence on the waterway, a claim Panamanian authorities reject.

'Panama is One of Our Strongest Economic Partners in the Hemisphere' Rubio tells Embassy Staff

On Sunday, February 2, U.S. Secretary of State Marco Rubio continued his official visit to Panama with a meeting with the staff of the U.S. embassy where he highlighted the relationship between both countries and their joint work on issues of security, migration, and trade. At the event, Chargé d'Affaires John Barrett welcomed Rubio, highlighting the achievements made thanks to bilateral cooperation.“The relationship between the United States and Panama has had its ups and downs, but it always grows stronger. Today, it shines thanks to all those who work in it,” said Barrett.

One of the key issues discussed was the significant reduction in the flow of migrants through the Darien jungle, thanks to a memorandum of understanding signed between the two nations.“The number of migrants has decreased by more than 90% compared to last year, making our borders safer,” Barrett said. Rubio, for his part, expressed his gratitude to the embassy employees and the Panamanian staff, recognizing the importance of their work.“You are the face and voice of the United States abroad. Your work strengthens our diplomacy and our relationship with Panama,” he said.

During his speech, Rubio also highlighted Panama's role as a strategic partner in economic and commercial matters, mentioning the United States' investment in energy infrastructure through the company AES, which imports liquefied natural gas (LNG) to supply the region. “Today, (Panama) is one of our strongest economic partners in the hemisphere and an important catalyst for trade. So it's a great place to visit first,” he said. The event was attended by local embassy employees, some of whom have served for over 50 years, who were recognized for their commitment and dedication. Rubio concluded his speech by reaffirming the United States government's commitment to continue strengthening its relationship with Panama.

MENAFN02022025000218011062ID1109159283