In a significant diplomatic shift, Panama has decided not to renew its participation in the Belt and Road Initiative with China following discussions with U.S. Secretary of State Marco Rubio.
According to Breitbart, this move highlights a major change in Panama's international alignment since its engagement with the Chinese initiative in 2018.
President José Raúl Mulino's announcement came after he met with Rubio, who visited Panama to discuss various issues including the nation's sovereignty and bilateral relations with the United States.
The leaders' talks centered around Panama's control over the Panama Canal, economic interactions, and security issues, particularly the growing concern over Chinese influence in the region. Mulino emphasized that Panama's authority over the canal was a non-negotiable point.
Mulino addressed the speculation about Chinese influence by referencing an audit being conducted at two Chinese-operated ports in the country. This was part of a broader conversation on how to fortify Panama's national security and sovereignty.
The agreement to not renew the BRI pact was perceived by Rubio as addressing concerns previously expressed by President Trump regarding China's influence on strategic locations such as the Panama Canal. According to State Department spokesperson Tammy Bruce, Trump viewed this as a potential threat.
Furthermore, both nations agreed to enhance cooperation on addressing regional security challenges, tackling illegal migration through the Darian Gap, and expanding U.S. investment opportunities in Panama. These developments point towards a strengthened alliance between Panama and the United States.
Reaction in the United States to Panama's decision was overwhelmingly positive, with several politicians applauding the outcome as a diplomatic victory. Senator Mike Lee (R-UT) expressed robust approval, tweeting "Buh bye, China. Keep your Belt and Road out of the Americas."
Michael Sobolik, a senior fellow at the Hudson Institute, described the decision as "a huge win for America," emphasizing the broader geopolitical implications of Panama's shift away from China. Trump’s National Security Advisor echoed this sentiment, referring to the decision as a "step in the right direction" for U.S. foreign policy interests in the region.
This development marks a considerable recalibration of Panama's foreign policy, which had gravitated toward China following its entry into the BRI in 2018, after the severance of relations with Taiwan a year earlier.
The impact of this policy shift underscores the ongoing strategic competition between the United States and China for influence in Latin America. Panama's strategic position, particularly in control of the Panama Canal, makes its international alignments of heightened importance to global trade and regional security. The discussions that led to this reversal were driven by mutual interests in preserving Panama’s sovereignty and expanding economic ties with long-standing allies like the United States, rather than new entrants such as China.
As Panama reframes its international relationships, the focus will likely shift towards enhancing bilateral engagements with the United States and other Western partners. This realignment could serve as a model for other Latin American countries navigating their foreign policies between global superpowers.
The Biden administration, through Secretary of State Rubio’s negotiations, has signified its intent to reinforce traditional alliances and curb rival influences in regions critical to U.S. strategic interests.
President Mulino’s remarks about possibly terminating the agreement with China ahead of schedule demonstrate Panama's commitment to this new diplomatic direction, ensuring the nation remains a significant player on the international stage.