US Secretary of State Marco Rubio has praised Panama’s decision to allow its participation in China’s global infrastructure initiative to lapse, describing the action as “a great step forward” for US-Panama relations. Any effort by Panama to distance itself from Chinese President Xi Jinping’s Belt and Road Initiative (BRI) is seen as a victory for Washington, which contends that Beijing employs the initiative as a means of “debt trap diplomacy” to enhance its global influence.
During his first overseas trip as the top US diplomat under Donald Trump, Rubio visited Panama, a key US ally in Latin America, and urged the nation to reconsider its ties with China. Following discussions with Rubio, Panama’s President José Raúl Mulino announced that the country would not renew its broad agreement to participate in the Chinese initiative, with the possibility of an early termination. While the agreement is set to expire in two to three years, further details were not provided.
Rubio expressed his approval on social media, stating, “Yesterday’s announcement by President @JoseRaulMulino that Panama will allow its participation in the CCP’s Belt and Road Initiative to expire is a great step forward for US-Panama relations, a free Panama Canal, and another example of @POTUS leadership to protect our national security and deliver prosperity for the American people.”
Professor Yanzhong Huang, a senior fellow at the Council on Foreign Relations, noted that Panama’s decision to exit the BRI represents an early success for the new Trump administration’s “brinkmanship diplomacy,” though he cautioned that replicating this outcome in other regions may be challenging. “The US now seems to be increasing its focus on its backyard, Latin America, where countries still depend on US support and trade,” Huang remarked. “However, I’m not sure the US could exert similar influence to compel an Asian country to make comparable concessions, especially since China is already the dominant player in that region.”
China’s embassy in Washington did not immediately respond to inquiries regarding the initiative or canal-related matters. Panama was the first Latin American nation to officially endorse the BRI in November 2017, shortly after shifting its diplomatic allegiance from Taiwan to China. China has dismissed Western criticisms of the initiative, asserting that over 100 countries have joined and that it has facilitated global development through new infrastructure projects.
Despite this, the BRI has faced scrutiny, with some partner nations voicing concerns over the high costs of projects and difficulties in repaying loans. Italy withdrew from the initiative in 2023 amid US pressure regarding Beijing’s economic influence. US apprehensions have also extended to certain Chinese companies operating near the Panama Canal, including a Hong Kong-based firm managing two ports at either end of the waterway, which was constructed by the US in the early 20th century and transferred to Panama in 1999.
