Panama Backs Out Of China’s Belt And Road After Rubio Meets With Mulino

Panama declared it will not renew its memorandum of understanding with China’s Belt and Road Initiative, with President José Raúl Mulino explaining that although the deal was inherited from a previous administration, his government intends to end the agreement outright.

“The 2017 memorandum of understanding on the Silk Road, the Belt and Road Initiative, will not be renewed by my government. That is how it will be,” Mulino said in Spanish, adding that authorities would evaluate “the possibility” of terminating the deal even earlier.

Mulino also underscored a commitment to attracting more U.S. investment in upcoming infrastructure projects.

“I believe this visit opens a path to build a new stage in the relationship,” he explained, referring to his recent discussions with US Secretary of State Marco Rubio. “At the same time, seek the greatest opportunity for increasing US investments in Panama.”

According to Mulino, key infrastructure projects are in development, and “when the bids start, which will begin soon, then [US firms] can participate.”

Rubio and US-China Relations

The announcement comes on the heels of Rubio’s visit to Panama, publicly asserting that Washington “cannot, and will not, allow” Beijing to deepen its influence near the strategically vital Panama Canal. In high-profile talks with Mulino and Foreign Minister Javier Chapma, Rubio underscored the need to contain what he characterized as the “effective and growing control” that the Chinese Communist Party wields in the area.

During the visit, the two sides discussed opportunities for US firms to take on major projects in transportation and energy—sectors that had previously been opened to Chinese developers. The Panamanian government hopes that strong US backing could offset any financial repercussions from disengaging with China.

The talks also tackled the ongoing migration crisis, with Panamanian officials hoping to gain resources and policy coordination to manage surges in migration through the Darién Gap, a hazardous stretch of jungle known for difficult terrain and limited government oversight.

Washington, for its part, has a vested interest in preventing large-scale migration flows into North America following US President Donald Trump’s repeated rhetoric on immigrants during his campaign.


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