The President of Panama, Mulino, announced that they will not renew China's Belt and Road Initiative, becoming the first Latin American country to exit the initiative.
On the 2nd, Mulino had a two-hour discussion with U.S. Secretary of State Rubio and then announced this decision at a press conference.
Panama was the first Latin American country to sign the Belt and Road Initiative with China. In June 2017, former President Varela cut diplomatic ties with Taiwan and established ties with Beijing, visiting Beijing in November of the same year to sign on to the Belt and Road Initiative.
According to the memorandum of agreement, the Belt and Road Initiative renews automatically every three years for another three years unless one party terminates. So far, China and Panama have renewed the Belt and Road Initiative in 2020 and 2023. However, Mulino has not yet indicated when he will formally inform the Chinese government of the decision to terminate the agreement and exit the Belt and Road Initiative.
Trump Accuses Panama Government
U.S. President Trump recently accused the Panama government of handing over operations of the Panama Canal to China.
The discussions between Rubio and Mulino focused on the relationship between China and Panama, as well as its implications for the U.S. After the talks, Rubio made a strong statement regarding the controversy of Chinese control over Panama Canal ports, stating, “This situation is unacceptable, and if it doesn't change immediately, the U.S. must take necessary measures to protect its rights.”
Rubio further stated, “The U.S. clearly states that it cannot and will not allow the Chinese Communist Party to continue to enhance control over the Panama Canal region.”
However, Mulino did not seem worried about this. He said, “I don't feel any real threat to the treaty or its validity, let alone any threat of using military force to take over the canal. I don't feel that.”
During the talks, Mulino also emphasized that he would continue to cooperate “sincerely” with the U.S. to clarify any outstanding issues while promoting the importance of U.S. investment in Panama, as Panama is an important commercial center in Latin America.