Panama has announced its official withdrawal from China’s Belt and Road Initiative following pressure from the United States. This step is seen as part of Panama’s efforts to improve its relations with the US.
Panama’s President Jose Raul Mulino announced through his country’s Embassy in Beijing that they had given China 90 days’ formal notice that they would not renew their participation in the initiative. Mulino also denied claims by the US State Department that US warships would have free passage through the Panama Canal. Mulino said that he had conveyed to US Defense Secretary Pete Hegseth that he had no authority to set canal transit fees or grant exemptions and rejected such claims. US President Donald Trump has expressed concern about Chinese influence over the Panama Canal and has not ruled out military intervention to secure the canal. The US welcomed Panama’s withdrawal from the Belt and Road Initiative. This development is interpreted as an indicator of Panama’s search for closer relations with the US in foreign policy.
