Panama has agreed to not renew the memorandum with China on their Silk Road project.

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In a surprising turn of events, Panama has decided not to renew the memorandum of understanding with China on their Silk Road project. This decision was confirmed by Panamanian President José Raúl Mulino after a meeting with Secretary of State Marco Rubio and representatives of the US government.

The memorandum, initially signed in 2017, was part of China’s ambitious Belt and Road Initiative, aiming to boost global trade through infrastructure development. The agreement had fostered the exchange of goods, technology, capital, and personnel between Panama and China.

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The decision comes at a time of heightened tensions between the United States and China, with the US urging Latin American countries to reassess their relationships with the Chinese government. During his visit, Secretary Rubio stressed the importance of preventing the Chinese Communist Party from gaining control over strategic areas like the Panama Canal.

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The memorandum was set to automatically renew every three years unless either party decided to terminate it. It had already been renewed twice since its inception, in 2020 and 2023. Now, President Mulino will officially notify the Chinese government of Panama’s decision.

Sources:

https://newsroompanama.com/2025/02/02/panama-will-not-renew-the-memorandum-on-the-silk-road-with-china/

https://legalinsurrection.com/2025/02/panama-backs-out-of-chinas-silk-road-agreement/

https://freebeacon.com/national-security/panama-wont-renew-belt-and-road-agreement-with-china-making-it-first-latin-american-nation-to-leave-initiative/


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