Raúl Mulino, the president of Panama, announced that his nation would not renew the agreement to join China’s Belt and Road plan just hours after US Secretary of State Marco Rubio arrived in Panama for his first foreign visit.
Mulino stated that Panama would want to collaborate with the US on new investments, including infrastructure projects, implying that the agreement with China would terminate sooner than expected. “I think this visit opens the door to build new relations … and try to increase US investments in Panama,” Mulino told the press.
Rubio met with Mulino in Panama on Saturday and made it clear that the Central American ally must swiftly curtail Chinese influence in the Panama Canal region or risk possible Trump administration punishment.
“The Trump administration’s initial assumption was that China’s presence in the area violates a treaty with the US, signed during the handover of the Canal,” Rubio told Mulino, echoing Trump’s threat to retake the Canal. The pact stipulates that the US-built canal must remain neutral forever and gives the US the right to use force if internal strife or an outside force interferes with the canal’s ability to function.
According to the State Department’s transcript of the discussion, “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.”
But according to Mulino, Rubio posed “no real threat of retaking the canal or the use of force.” He quickly clarified, however, that Panama was abandoning the Belt and Road agreement with China.
Mulino confirmed that Rubio brought up China’s involvement in the port, but he swiftly stressed that an audit was being conducted of the consortium that controlled them. Around the Canal, the Chinese-affiliated firm runs two ports. “We have to wait until that audit ends before we can reach our legal conclusions and act accordingly,” Mulino stated.
He added that Rubio will receive a more thorough explanation from the canal authority.
Trump, meanwhile, has reaffirmed his caution about Panama. Panama broke the deal, he told reporters Monday at Joint Base Andrews. “China is in charge of the canal; they did not receive it. It was erroneously given to Panama. However, they broke the contract, and we’re either going to revoke it or something really significant will occur,” he continued.
