Panama announces intentions to renew participation in China`s BRI

(MENAFN) Panama announced on Sunday that it will not renew its participation in China's Belt and Road Initiative (BRI), with President Jose Raul Mulino stating that the agreement, made in 2017, would not be extended. Additionally, Mulino mentioned the possibility of ending the deal early. This decision follows a meeting with US Secretary of State Marco Rubio, who urged Panama to reduce Chinese influence over the Panama Canal, a crucial waterway historically built by the US and transferred to Panama in 1999.

Rubio warned that Panama’s dealings with China around the canal may violate the 1977 treaty that ensures the waterway’s neutrality and that the US could take retaliatory action if Panama does not address these concerns. US President Donald Trump has similarly threatened to retake control of the canal if China's presence is not reduced and called the fees paid by the US for using the canal "ridiculous."

Mulino, after the talks, dismissed any immediate threat of US retaliation and reiterated Panama’s ownership of the canal. He ruled out any negotiations with the US over the canal’s control. Chinese officials, on the other hand, have expressed that they respect Panama’s sovereignty and have no intention of infringing on it.

The BRI, launched by China in 2013, aims to build infrastructure and improve global trade. Panama was the first Latin American country to sign on to the initiative, and as part of it, China’s CK Hutchison Holdings secured control of two ports at the canal’s entrances. A Chinese-led consortium is also building a $1.3 billion bridge over the waterway.

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