Panamanian President Jose Raul Mulino announced on Sunday that the strategically important nation will not renew its agreement with China’s Belt and Road Initiative following a meeting with U.S. Secretary of State Marco Rubio. President Donald Trump has previously accused Panama of breaching the terms of the treaty established by former President Carter, citing unfair canal fees and the nation’s increasing ties with China.
After their discussions in Panama City, Mulino informed reporters that the agreement is set for renewal in one to two years. He further indicated that he would consider the possibility of concluding it sooner.
Chinese enterprises currently manage ports adjacent to the Panama Canal, and Panama was the inaugural Latin American nation to join the Belt and Road Initiative. The canal was under U.S. control until 1999, when it was handed over to Panama as part of a treaty negotiated by former President Jimmy Carter in the late 1970s.
During the highly anticipated meeting, Rubio cautioned Mulino that China’s involvement in Panama poses a risk to the canal and contravenes the terms of the Panama Canal treaty. “Secretary Rubio made it clear that this status quo is unacceptable and that, without immediate changes, the United States would need to take necessary measures to safeguard its rights under the Treaty,” stated State Department spokesperson Tammy Bruce to Reuters.
President Trump has asserted that the U.S. will seek to regain control of the Panama Canal if the treaty violations are not rectified. “The Panama Canal is regarded as…
It was also inappropriate for Panama to impose excessive charges on the United States, its Navy, and corporations operating within our borders. Our Navy and commercial interests have been subjected to unfair and imprudent treatment. The fees levied by Panama are outrageous, particularly in light of the significant generosity that the U.S. has extended to Panama. This blatant exploitation of our nation will cease immediately, Trump’s statement asserted.
The tolls for the Panama Canal can vary significantly, ranging from thousands to hundreds of thousands of dollars, depending on the size of the vessel and the volume of cargo it carries. At the upper end, charges can exceed $500,000.
Trump has not dismissed the option of employing military action should Panama fail to sever its ties with the Chinese Communist Party
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