Secretary of State Marco Rubio praised Panama on February 3 for allowing its membership in China's global infrastructure initiative to expire, calling it "a great step forward" for its ties with the United States.

U.S. officials have said that Beijing is using the Belt and Road Initiative as a form of "debt trap diplomacy" to increase its worldwide influence, thus any effort by Panama to separate itself from the program would be welcomed by Washington, as Breitbart News reported.

Panama is a major US ally in Latin America, and this week Rubio traveled there for the first time as the top US diplomat under President Trump.

While there, he pressed the country about its connections with China.

Result of Talks

The president of Panama, Jose Raul Mulino, said after his meeting with Rubio that the broad agreement under which his country would participate in the Chinese project would not be extended and might be terminated early.

Without going into detail, he stated that the agreement was due to expire in two or three years.

“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,” Rubio posted on X after departing the country.

Panama's Involvement

Panama became the first Latin American nation to embrace the Belt and Road Initiative in November 2017. This was five months after switching diplomatic ties to China from Taiwan, which Beijing claims as its territory.

China claims that over 100 countries have embraced the plan, which has encouraged global development with new ports, bridges, railroads, and other infrastructure.

Its exorbitant project costs and loan repayment issues have drawn criticism from some partner governments. Italy left the project in 2023 after US pressure about Beijing's economic reach.

Widespread Fear

US concerns have long extended to Chinese enterprises working near the Panama Canal, notably a Hong Kong corporation that operates two ports at both mouths of the waterway, which was built by the US in the early 20th century and granted to Panama in 1999.

Two Chinese state-owned businesses are building a fourth canal entrance bridge separately.

On February 2, the US State Department claimed Rubio relayed Trump's message that China's presence threatened the canal and violated the US-Panama pact.

After meeting with Rubio, Mulino indicated a willingness to examine the 25-year concession to Hong Kong-based CK Hutchison Holdings, extended in 2021, for the two access ports, pending an audit.