The Panamanian government has announced its decision to not renew a memorandum of understanding with China known as "The Silk Road," signed in 2017 under the previous administration, according to NewsroomPanama.
The decision follows recent discussions between Panamanian President José Raúl Mulino and U.S. Secretary of State Marco Rubio.
The memorandum aimed to promote cooperation between the two countries within the framework of China's Belt and Road Initiative, focusing on trade, investment, and cultural exchange.
However, concerns have been raised by the United States regarding potential Chinese influence over the Panama Canal. "The United States cannot and will not allow the Chinese Communist Party to continue its effective and growing control over the Panama Canal area," Secretary Rubio stated in a social media post.
President Mulino confirmed the decision to revoke the agreement, stating that Panama would prioritize a constructive dialogue with the United States to address concerns regarding Chinese influence in the region. He emphasized the importance of maintaining strong bilateral relations with the U.S. and reiterated Panama's commitment to the neutrality and sovereignty of the Panama Canal.
"This status quo is unacceptable and that, in the absence of immediate changes, it would require the United States to take the necessary measures to protect its rights under the Treaty," Rubio stated in a press release following his meeting with President Mulino. During his visit to Panama, Secretary Rubio toured the Panama Canal, met with Canal Authority officials, and emphasized the importance of continued cooperation between the U.S. and Panama on matters of regional security and economic development.