Panama Bends the Knee to Trump, Drops China’s Belt and Road After Rubio’s Warning [WATCH]

Panamanian President Jose Raul Mulino announced Sunday that Panama will not renew its agreement with China’s Belt and Road Initiative, following discussions with U.S. Secretary of State Marco Rubio.

The decision signals a shift in Panama’s relationship with China, a move that aligns with growing concerns from the United States regarding Beijing’s influence in the region.

Mulino stated after the meeting in Panama City that the agreement, which is set for renewal within the next couple of years, will not be extended.

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He also indicated that he would evaluate whether the agreement could be terminated ahead of schedule.

Panama was the first Latin American country to join China’s Belt and Road Initiative, a global infrastructure project through which China builds roads, ports, and other critical infrastructure in participating nations.

Critics argue that the initiative often places developing countries in economic and security dependency on Beijing. Chinese businesses currently operate ports near the Panama Canal, a key global trade route.

The Panama Canal, built and managed by the United States until 1999, was transferred to Panama under the terms of a treaty negotiated by former President Jimmy Carter in the late 1970s.

In recent years, former President Donald Trump has accused Panama of violating the treaty by imposing excessive fees on U.S. commercial and naval vessels and by deepening its economic ties with China.

During his meeting with Mulino, Rubio warned that China’s increasing presence in Panama threatens the security of the canal and violates the existing treaty.

“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,” said State Department spokesperson Tammy Bruce in a statement to Reuters.

Following his re-election in November, Trump reaffirmed his position on the matter, emphasizing the canal’s importance to the United States.

The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security.

If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama… pic.twitter.com/Xrtx8Bk2UW

— Trump War Room (@TrumpWarRoom) December 22, 2024

“The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security,” Trump wrote on Truth Social. “A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports. The United States is the Number One user of the Canal, with over 70 percent of all transits heading to, or from, U.S. ports.”

Trump also criticized Panama’s toll rates, calling them unfair and excessive.

“It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete ‘rip-off’ of our Country will immediately stop,” he stated.

The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security. A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and…

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) December 21, 2024

The tolls for passage through the Panama Canal vary significantly, ranging from thousands to over $500,000, depending on the size and cargo capacity of the vessel.

While Mulino’s decision to exit the Belt and Road Initiative marks a setback for China’s influence in the region, tensions remain over the future control and pricing of the Panama Canal.

Trump has not ruled out military intervention if Panama continues its economic partnership with China.

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