Panama Drops Silk Road Deal – U.S. Influence Prevails

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  • President Mulino confirms that Panama will not renew its memorandum of understanding with China, citing U.S. concerns over growing Chinese influence.
  • Trump claims China controls the canal and warns of a U.S. response if Panama does not address the issue.
  • President Mulino seeks to clarify concerns about Chinese involvement in the Panama Canal.
  • The U.S. Secretary of State visits the canal and energy facilities, highlighting Panama as a key economic partner.

Panama’s decision to end its Silk Road agreement with China has reignited geopolitical tensions between the U.S. and China over control of the Panama Canal. Amid accusations of growing Chinese influence, Trump has threatened action, while Panama has opened discussions with the U.S. to clarify the situation, reports Newsroom Panama.

Panama Ends Silk Road Memorandum with China

Panama’s President José Raúl Mulino announced that the country would not renew its memorandum with China, originally signed in 2017.

This decision aligns with U.S. interests, as Washington has long expressed concerns about China’s role in Panama.

Trump’s Threat to “Take Back” the Panama Canal

Donald Trump has publicly claimed that China controls the canal and warned that if Panama does not act, the U.S. will intervene.

He argued that the canal’s security is vital for U.S. interests, calling for potential action.

Panama Seeks to Ease U.S. Concerns Through Talks

To defuse tensions, President Mulino has initiated technical discussions with the U.S. to clarify the extent of Chinese involvement in the Panama Canal.

The audit of Panama Ports Company (PPC) is expected to shed light on the issue.

Marco Rubio’s Visit Strengthens U.S.-Panama Relations

U.S. Secretary of State Marco Rubio emphasized Panama’s importance as an economic partner during his visit.

He met with the Panama Canal Authority and toured key infrastructure, including LNG energy facilities, reinforcing U.S. regional investment.

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Source: Newsroom Panama