Secretary of State Marco Rubio successfully persuaded Panama’s President José Raúl Mulino to abandon plans to renew a prior agreement with China regarding the Belt and Road Initiative (BRI).
Following a meeting with Rubio during his visit to Panama, Mulino made his decision clear.
According to Baha Breaking News, he confirmed, “One important thing, which is a decision I made and communicated to him, is that the 2017 memorandum of understanding on the Silk Road, part of the Belt and Road Initiative, will not be renewed by my government. That is a fact.”
“We are going to study the possibility of whether it can be ended earlier or not. I think it is up for renewal in one or two years, because it’s every three,” Mulino added.
He reiterated his stance, leaving no ambiguity, “So that initiative which was signed will not be renewed by my government.”
During a meeting earlier that day, Rubio reportedly issued an ultimatum to Mulino over Beijing’s increasing hold on the Panama Canal.
According to State Department Spokesperson Tammy Bruce, Rubio stressed that President Donald Trump had preliminarily concluded that the Chinese Communist Party’s control over the canal represented a violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.
“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” the statement read.
President Trump has maintained pressure on Panama to curtail Beijing’s influence over the vital waterway, citing serious national security concerns.
Trump’s stance is rooted in fears that Chinese companies may limit U.S. access to the canal, threatening international trade and prompting treaty violations.
Trump also linked the canal’s strategic importance to the sacrifices made by Americans during its construction over a century ago.
Amid these escalating concerns, Mulino assured that Panama remains in control of the canal, regardless of ongoing Chinese operations at key ports on both ends of the waterway.
To address these tensions further, Mulino confirmed that an audit examining two Chinese-operated ports was underway and hinted that decisions regarding these ports may soon follow based on findings from the review.
Aside from the canal issue, Rubio expressed his appreciation for Mulino’s cooperation in addressing other matters of mutual interest.
Notably, Rubio highlighted their collaboration on a repatriation program designed to cut down on illegal migration through the perilous Darien Gap, describing it as a shared accomplishment.
The two leaders also broached topics concerning trade fairness and business competition. They discussed reforms to allow equal opportunities for American companies and underscored mutual support for a democratic future in Venezuela.
“Secretary Rubio expressed his gratitude for the productive discussion and underscored the United States’ dedication to making both nations safer, stronger, and more prosperous,” the spokesperson added.
“He noted this meeting marks an important step in reinvigorating the strategic relationship between the United States and Panama, in line with President Trump’s vision.”