Washington, February 3. Panama’s President Raul Mulino announced on Sunday that Panama will not renew the Belt and Road Initiative (BRI) agreement with China. Panama had signed this agreement with China in 2017, and now it appears to be ending prematurely.

Mulino expressed interest in working with the United States on new investments, including infrastructure-related projects. U.S. Secretary of State Marco Rubio arrived in Panama on Sunday for a visit—the first by a U.S. diplomat since Trump became president.

Speaking to the media, Mulino described Rubio’s visit as opening new doors in bilateral relations. However, he reiterated that there would be no debate over the sovereignty of the Panama Canal. He mentioned discussing U.S. concerns regarding China’s involvement in the canal with Rubio.

U.S. Warns of Necessary Actions

Following Mulino’s statement, the U.S. State Department shared details of discussions between the two countries, referencing Rubio’s warnings to Panama regarding China.

The report stated that Chinese control over the Panama Canal would mean the U.S. would take necessary steps to protect its interests. The U.S. had transferred control of the canal to Panama in 1977 under a treaty.

According to the agreement, if a foreign power disrupts the canal’s operations, the U.S. reserves the right to military intervention.

However, Mulino denied on Sunday that the U.S. would take military action to reclaim the canal.

Trump Threatened to Take Back the Panama Canal

U.S. President Donald Trump had previously threatened last month, even before taking office, to bring the Panama Canal back under U.S. control. The canal is part of Panama, a Caribbean country, and was under U.S. control until 1999.

Trump accused Panama of charging the U.S. “higher fees than other nations” for using the canal and claimed China’s influence over the canal was growing.

After a rally, Trump posted an AI-generated image on his social media account showing the U.S. flag planted in the middle of the Panama Canal. The caption read, “Welcome to the United States Canal.”

BRI Aims to Connect 70 Countries

China’s Belt and Road Initiative (BRI), also called the New Silk Road, is a connectivity project involving multiple countries. Under BRI, China plans to link 70 countries in Asia, Europe, and Africa through rail, road, and maritime routes. China also seeks to build ports, naval bases, and surveillance posts in the Indian Ocean region and near India.

Belt and Road Initiative (BRI)

The Belt and Road Initiative (BRI), launched by China in 2013, is a global infrastructure and economic development strategy aimed at enhancing trade and connectivity across Asia, Africa, and Europe. Inspired by the ancient Silk Road, it involves building roads, ports, railways, and other projects to strengthen China’s ties with over 140 participating countries. Critics highlight concerns over debt sustainability and geopolitical influence, while supporters emphasize its potential to boost global trade and development.

Panama Canal

The **Panama Canal** is a 50-mile artificial waterway connecting the Atlantic and Pacific Oceans, completed in 1914 after decades of construction by France and later the United States. It revolutionized global trade by significantly shortening maritime routes, avoiding the lengthy and dangerous trip around South America. Controlled by the U.S. until 1999, it is now managed by Panama and remains one of the world’s most vital shipping passages.

United States Canal

The **United States Canal** refers to a historic man-made waterway built in the early 19th century, primarily the **Chesapeake & Delaware (C&D) Canal**, completed in 1829. It connected the Chesapeake Bay and Delaware River, significantly boosting trade and transportation between the Mid-Atlantic states. Today, it remains an important shipping route, maintained by the U.S. Army Corps of Engineers as part of the Intracoastal Waterway.