JUST IN: Panama Caves, Moves Away From China After Pressure From Trump

Panamanian President Jose Raul Mulino announced on Sunday that the strategically important nation will not renew its agreement with China’s Belt and Road Initiative following a meeting with U.S. Secretary of State Marco Rubio. President Donald Trump has previously accused Panama of breaching the terms of the treaty established by former President Carter, citing unfair canal fees and the nation’s increasing ties with China.After their discussions in Panama City, Mulino informed reporters that the agreement is set for renewal in one to two years. He further indicated that he would consider the possibility of concluding it sooner.

This announcement represents a significant setback for China’s influence in the Western Hemisphere, as Panama was the first Latin American country to engage with the Belt and Road Initiative. This ambitious Chinese endeavor aims to revive the Silk Road, a historical network of trade routes connecting the East and West. Through this initiative, Beijing invests in infrastructure projects in participating countries, often gaining substantial control over their economies and national security.Chinese enterprises currently manage ports adjacent to the Panama Canal, and Panama was the inaugural Latin American nation to join the Belt and Road Initiative. The canal was under U.S. control until 1999, when it was handed over to Panama as part of a treaty negotiated by former President Jimmy Carter in the late 1970s.

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