February 3, 2025

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Panama will not renew the Memorandum of Understanding on the Belt and Road Initiative with China

Fundación Andrés Bello

Photo: Wikimedia Commons.

The José Raúl Mulino administration announced that Panama will not renew the Memorandum of Understanding with China regarding the Belt and Road Initiative, signed in 2017 and set to expire in 2026. The decision was made public after a meeting in Panama City with U.S. Secretary of State Marco Rubio, who warned that China's influence over the Panama Canal was "unacceptable" to Washington and threatened to take action if immediate changes were not made.

Mulino, without directly addressing U.S. pressure, stated that the meeting with Rubio was "calm and respectful." However, the Panamanian government has taken steps to avoid escalating tensions with the U.S., including hiring Republican lobbyists and aligning its cabinet with a strategy to prevent conflicts over the Canal. In exchange, Panama is negotiating migrant control in the Darién Gap, the exchange of intelligence on money laundering and organized crime, and possible revisions to port concessions granted to a Hong Kong-based company.

While the government was making these decisions, protests erupted against Rubio’s visit, with social organizations denouncing U.S. interference and local corruption.

Additionally, Panama is considering allowing the construction of an airstrip near the Colombian border in the Darién province to strengthen deportation policies. The government may also relax confidentiality over financial information related to money laundering and organized crime.

After meeting with Mulino, Rubio visited the U.S. Embassy and AES, an American energy company operating in Colón, before continuing his tour of El Salvador, Costa Rica, Guatemala, and the Dominican Republic. Meanwhile, former President Donald Trump has yet to comment on Panama’s decision, though in recent weeks he has criticized China's influence over the Canal and imposed new tariffs on Mexico, Canada, and China.

Main Source:

Panamá no renovará el acuerdo de entendimiento con China tras reunirse con Marco Rubio – El País

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