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Panama will not renew its participation in China's Belt and Road Initiative (BRI) after US President Donald Trump's warning. Panama's President Jose Raul Mulino has announced that he will withdraw from the BRI after a meeting with US Secretary of State Marco Rubio.
With this, it will be the first Latin American country to withdraw from the Chinese infrastructure initiative . Mulino stated that although preparations are being made to renew the agreement within the next one/two years, it is likely to be canceled already. "We will study the possibility of ending it soon," he said.
Panama participated in the BRI in 2017. In 2017, during the administration of former President Juan Carlos Varela, Panama signed an agreement to increase Chinese investment in infrastructure. Panama's new decision was made public amid US concerns about China's presence in the Panama Canal. Panama's decision comes as US concerns grow over China's presence in the Panama Canal Zone.
After discussions with Mulino, Rubio emphasized Washington's position, saying, 'The United States cannot and will not allow the Chinese Communist Party to continue its effective and growing control over the Panama Canal Zone.'
Hong Kong-based firm CK Hutchison Holdings has been operating two major ports on both sides of the canal under a 25-year concession that was renewed in 2021. American officials have been saying that the construction of infrastructure under China's control near the canal could pose a strategic threat.
'Minister Rubio has made it clear that this status quo is unacceptable and there is no immediate change . Therefore, the United States must take the necessary steps to protect its rights under the treaty,' US State Department spokesperson Tammy Bruce said in a statement .
