Panama Withdraws from China’s Belt and Road Initiative Under U.S. Pressure
Panama’s president announced the decision after meeting with U.S. Secretary of State Marco Rubio.
Panama has officially announced its withdrawal from China’s Belt and Road Initiative (BRI). President José Raúl Mulino made the statement following high-level talks with U.S. Secretary of State Marco Rubio.
A U.S. Ultimatum
According to reports, Rubio demanded that Panama take immediate action to reduce Chinese influence in the region. He warned that the U.S. would take necessary steps to protect its interests under the Torrijos-Carter Treaties if Panama failed to comply.
These treaties, signed in 1977, facilitated the transfer of control over the Panama Canal from the U.S. to Panama. However, Washington retains the right to intervene if shipping or American interests in the region are threatened.
The Future of Chinese Presence in Panama
Mulino also announced that his government will reassess the role of Chinese companies in managing Panama’s port infrastructure. Special attention will be given to auditing CK Hutchison Holdings, a Hong Kong-based company that operates both entrances to the Panama Canal.
This move could deal a significant blow to China’s economic presence in Latin America. Beijing has heavily invested in Panama since establishing diplomatic ties in 2017, aiming to strengthen its role in global trade.
Panama Demands U.S. Compensation for Migrants
Despite concessions to Washington on China, Mulino emphasized that Panama’s sovereignty over the canal is non-negotiable. However, he offered U.S. assistance in repatriating migrants traveling through Panama to the U.S. if Washington agrees to cover the costs.
Regional Implications
Panama’s exit from BRI could be part of a broader U.S. strategy to weaken China’s influence in Latin America. This also serves as a warning to other countries in the region partnering with China: choosing Beijing could invite pressure from Washington.
The key question now is how China will respond—whether diplomatically or economically. As a crucial global trade hub, Panama has found itself at the center of a growing geopolitical rivalry between two superpowers.
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