Panama has decided to end its participation in the Belt and Road Initiative (BRI), a global investment program that brought significant Chinese funding to the country. The decision comes after U.S. concerns about China’s growing influence over the Panama Canal.
Since 2017, Panama has been part of this initiative, which focused on infrastructure and economic development. However, the U.S. warned that if changes were not made to limit China’s control in the region, it would take steps to protect its interests. This warning played a key role in Panama’s decision.
Panama aligns with the U.S.
Panamanian President José Raúl Mulino confirmed that his government would not renew the agreement. “We want to work with the United States as we have always done,” he declared. He added that the memorandum, which is renewed every three years, will not continue under his administration.
Mulino also mentioned that his government is exploring whether an early termination is possible. His announcement followed a visit from U.S. Secretary of State Marco Rubio, who discussed strengthening ties between the two nations. Mulino believes this meeting marks a new chapter in Panama-U.S. relations.
@davidgokhshtein 🚨BREAKING: Panama’s President just scrapped the country’s agreement with China—right after meeting with Secretary of State Marco Rubio.
♬ Demise of a Nation – Secession Studios
The decision follows rising diplomatic tensions. The U.S. government recently stated that China’s growing role in the Panama Canal threatens the canal’s security. This concern led to renewed efforts by the U.S. to reinforce its influence in the region.
China’s expanding presence in Latin America
China launched the Belt and Road Initiative in 2013 to invest in infrastructure, energy, and technology worldwide. While most projects are in Asia, Latin America has also become a key region for Chinese investment.
As of late 2023, 22 countries in Latin America and the Caribbean have joined the initiative. Major projects include a $3.6 billion port in Peru, lithium mining in Chile, and increased investment in Brazil’s technology sector.
China’s growing presence has shifted economic power in the region. While the U.S. was historically the dominant trade partner for Latin America, China now holds that position in several key economies, including Brazil, Chile, and Peru. Some leaders in the region see China as an opportunity to reduce dependence on the U.S.
Colombia, for example, has strengthened its ties with China in recent years. President Gustavo Petro has even expressed interest in joining the Belt and Road Initiative and China’s BRICS economic bloc. If this happens, Colombia could pursue a trade deal with Beijing.
Panama’s decision to step away from China’s initiative highlights the ongoing struggle for influence in Latin America. While some countries embrace China’s investments, others—like Panama—are choosing to stay aligned with the U.S.