After U.S. Pressure, Panama Announces Exit from China’s ‘Belt and Road Initiative’

Panama’s President, José Raúl Mulino, announced on Thursday (6) that the country will withdraw from the Belt and Road Initiative. This Chinese project funds infrastructure to improve connectivity and economic cooperation with other nations.

The initiative was launched in 2013 with a trillion-dollar budget to build and renovate roads, railways, ports, airports, energy networks, and telecommunications. Panama’s decision to leave comes amid pressure from U.S. President Donald Trump, who has threatened to take control of the Panama Canal, claiming that the waterway is under Chinese influence.

Mulino stated that Panama’s embassy in Beijing has “submitted the corresponding document” to “announce the cancellation 90 days in advance,” as the agreement requires.

He denied that the decision was made under U.S. demands—last week, U.S. Secretary of State Marco Rubio met with the Panamanian president in Panama City.

Also known as the Belt and Road Initiative, the Chinese government program funds infrastructure projects and investments in Latin America and other regions worldwide. With a budget of trillions of dollars, the program began in 2013 and has strengthened recently.

Mulino Denies U.S. “Free Passage”

Also on Thursday, the Panamanian government and the Panama Canal Authority (ACP) denied that U.S. vessels have “free passage” through the waterway, contradicting claims made by the U.S. State Department.

President José Raúl Mulino called the U.S. government’s statement “intolerable” and an “absolute falsehood.” He also instructed Panama’s ambassador to the U.S. to take a “firm stance” in handling the situation.

“I must reject this State Department statement because it is based on a falsehood. (…) This is intolerable, simply intolerable. And today, Panama is making it clear to the world that I reject continuing bilateral relations based on lies and falsehoods,” Mulino declared.

Source: G1

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