PANAMA CITY: Panama has formally pulled out of China’s massive Belt and Road infrastructure program, following pressure from the United States to reduce Beijing’s influence on the Panama Canal, President Jose Raul Mulino announced Thursday.
Mulino told reporters that the Panamanian Embassy in Beijing had given China the required 90-day notice of its decision not to renew its involvement in the plan.
On February 3, US Secretary of State Marco Rubio warned Panama’s President Mulino that Washington will “take measures necessary” if Panama does not immediately take steps to end what President Donald Trump sees as China’s influence and control over the Panama Canal.
Mulino, after the talks with the top US diplomat in Panama City, signaled he would review agreements involving China and Chinese businesses, and announced further cooperation with the US on migration, but reiterated that his country’s sovereignty over the world’s second busiest waterway is not up for discussion.
Rubio delivered a message from Trump that China’s presence – through a Hong Kong-based company operating two ports near the canal’s entrances – was a threat to the waterway and a violation of the US-Panama treaty, US State Department spokesperson Tammy Bruce said in a statement.
“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” Bruce said.
Rubio did not spell out exactly what steps Panama must take or what US retaliation would look like.
Upon returning to office, Trump threatened to take control of the Panama Canal, built by the United States in the early 20th century and handed over to Panama in 1999, claiming the canal is being operated by Beijing.
He has refused to rule out use of military force over Panama, drawing criticism from Washington’s Latin American friends and foes alike. On Sunday, Trump said that he did not think troops would be necessary, but that Panama had violated the agreement and the United States would take back the canal.
“China’s running the Panama Canal. That was not given to China, that was given to Panama – foolishly – but they violated the agreement, and we’re going to take it back, or something very powerful is going to happen,” Trump told reporters.
“I don’t think troops will be necessary in Panama,” he added.