Following a meeting with U.S. Secretary of State Marco Rubio and amid concerns raised by President Donald Trump, Panama's President José Raúl Mulino announced the decision to terminate a key development deal with China. The deal, part of China's Belt and Road global development initiative, will not be renewed, signaling a shift towards closer collaboration with the United States.
Mulino emphasized that Panama's sovereignty over the Panama Canal, a vital waterway connecting the Pacific Ocean and the Caribbean Sea, remains intact. The move comes in response to allegations that China has been exerting control over the canal, with Trump expressing concerns over the situation.
The U.S. has long viewed the Panama Canal as strategically significant, with House Republicans introducing a bill to repurchase the canal amid fears of Chinese influence. The bill, known as the Panama Canal Repurchase Act, aims to give the U.S. government the authority to negotiate with Panama for the canal's ownership.
Rep. Dusty Johnson, a proponent of the bill, highlighted the importance of American control over the canal, citing its economic and security implications. The U.S. Department of State estimates that a significant majority of vessels passing through the canal have ties to U.S. ports, underlining its value to American interests.
Aside from the canal issue, discussions between U.S. officials and Panama also touched on addressing migration challenges in the region and promoting fair competition for American businesses. The decision to end the development deal with China reflects a broader realignment of Panama's foreign policy towards strengthening ties with the U.S.
