Panama will not renew its agreement with China, called The Silk Road. This agreement was signed in November 2017 under former President Juan Carlos Varela.
President José Raúl Mulino confirmed this decision after meeting with U.S. Secretary of State Marco Rubio and other U.S. officials.
Rubio later posted on social media that the United States will not allow China to expand its control over the Panama Canal area. He also said they discussed stopping mass migration and ensuring fair competition for U.S. businesses.
The agreement promoted trade and cooperation between Panama and China. It focused on the Silk Road Economic Belt and the 21st Century Maritime Silk Road. The goal was to exchange goods, technology, capital, and workers. It also aimed to improve communication, infrastructure, and cultural exchange between both countries.
According to the agreement, Panama and China would work together in five areas: policy coordination, infrastructure, trade, finance, and cultural cooperation. The agreement is renewed every three years unless one side decides to end it.
It was renewed in 2020 and 2023. However, Mulino has now decided to end it.