Panama withdraws from Belt and Road Initiative amid US pressure

Panama has made a significant shift in its foreign policy by deciding not to renew its agreement with China's Belt and Road Initiative. This decision came after a visit from U.S. Secretary of State Marco Rubio, highlighting the growing influence of the United States in the region. President José Raúl Mulino stated that he would consider the details of the agreement, indicating the potential for earlier termination. The withdrawal makes Panama the first Latin American country to exit this initiative, which is seen as a strategic win for the U.S. against Chinese economic expansion in the Western Hemisphere. The maturing relationship between Panama and the U.S. is evidenced by Mulino's promise to allow free passage for U.S. Navy ships through the Panama Canal, an important waterway previously operated by the U.S. until 1999. The implications of this move are profound, considering China’s ongoing influence through control of ports around the canal. Critics argue that projects under the Belt and Road Initiative could lead to crippling debt for participating countries, raising concerns over their sovereignty and autonomy. This scenario has prompted the United States to assert its influence, as evidenced by Rubio's remarks on protecting U.S. interests related to the canal. Furthermore, Mulino's commitment to review the operations of Chinese businesses in the region reflects a more cautious approach toward economic agreements with Beijing. With Brazil having previously retracted its agreement to join the initiative and Italy being the first European nation to exit, Panama's departure may signal broader regional trends against Chinese control in Latin America. The situation creates a platform for increased U.S. engagement and influence while combating Chinese expansion in critical areas of trade.