Rubio applauds Panama’s choice to withdraw from Chinese infrastructure deal

February 4, 2025 TruthUSA

Secretary of State Marco Rubio met with Panama’s president as part of his Latin America tour as the top U.S. diplomat.

U.S. Secretary of State Marco Rubio praised Panama for deciding not to renew a trade and infrastructure development agreement with China, calling it a positive development for the country’s relationship with the United States.

Rubio is currently visiting Panama, El Salvador, Costa Rica, Guatemala, and the Dominican Republic as part of his official overseas trip as the top U.S. diplomat under President Donald Trump. The State Department stated that Rubio aims to promote Trump’s America First foreign policy during the visit, which concludes on Feb. 6.

Following discussions with Rubio, Panamanian President Jose Raul Mulino announced on Feb. 2 that Panama would not renew its participation in China’s Belt and Road Initiative (BRI), also known as “One Belt, One Road.” Mulino mentioned that the agreement was set to expire in two to three years but could be terminated earlier.

Critics of the Chinese Communist Party (CCP) and Washington have condemned the CCP’s efforts to entice countries into the initiative with the aim of expanding its global influence through “debt trap diplomacy.”

Rubio stated on social media platform X on Feb. 3 after leaving Panama, “Yesterday’s announcement by President [Jose Raul Mulino] that Panama will allow its participation in the CCP’s Belt and Road Initiative to expire is a great step forward for U.S.-Panama relations, a free Panama Canal, and another example of [Trump’s] leadership to protect our national security and deliver prosperity for the American people.”

Panama became part of the BRI in November 2017, becoming the first Latin American country to officially join the infrastructure projects. Five months earlier, Panama transitioned its diplomatic ties from Taiwan to China.

The BRI was initiated by the Chinese regime in 2013 to create land and sea trade networks centered around Beijing by funding infrastructure projects across Southeast Asia, Africa, Europe, and Latin America.

Many legislators appreciated Panama’s choice not to renew its BRI agreement with China.

Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on the Chinese Communist Party, stated on Feb. 3, “This is a positive shift, and I hope more countries will prioritize partnerships with the U.S. and recognize the risks of China’s influence.” He commented in a release.

Rep. Michael McCaul (R-Texas), former chair of the House Foreign Affairs Committee, described Panama’s decision as “a significant win” for the United States and “the Panamanian people who are escaping the CCP’s debt trap diplomacy,” according to a statement.

Panama Canal

Rubio’s visit to Panama underscores Trump’s emphasis on reclaiming the Panama Canal, citing that Panama has breached a neutrality pledge due to China’s influence over the waterway.

The Neutrality Treaty, officially known as the Neutrality Treaty, allows the United States to use military force to safeguard the Panama Canal’s neutrality, essentially granting perpetual use of the waterway to the United States.

The Panama Canal, which commenced operations in 1914 after a decade of construction by the United States, was returned to Panama in a 1977 agreement signed by President Jimmy Carter. The 1977 agreement comprises the Neutrality Treaty and the Panama Canal Treaty.

CK Hutchison Holdings, based in Hong Kong, manages the Balboa port on the Pacific side and the Cristóbal port at the Atlantic entrance of the canal. Two Chinese state-owned entities are presently constructing a fourth bridge over the canal.

“China is operating the Panama Canal, which was not handed to China, but foolishly given to Panama. They violated the agreement, and we will either take it back or something very powerful will happen,” stated Trump to reporters on Feb. 2.

Trump noted on Feb. 3 that he was scheduled to speak with Panamanian officials on Feb. 7.

The U.S. State Department reported on Feb. 2 that Rubio relayed a message from Trump emphasizing that China’s presence in Panama poses a threat to the canal and breaches the treaty.

Following talks with Rubio, Mulino indicated that, depending on the results of an audit, he would consider reviewing the 25-year concession granted to CK Hutchison Holdings for operating the two ports.

The Panama Maritime Authority announced the audit of CK Hutchison Holdings on Jan. 20.

Ryan Berg, director of the Americas program at the Center for Strategic and International Studies, suggested that the audit could provide a means to revoke the concessions if corruption is uncovered in the agreement.

“That gives Panama more legal grounds to back out of the concessions and reopen them so that an American or European company might win the bid,” Berg explained.

Reuters contributed to this report.

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