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Saturday, February 08, 2025  
10 Shaban 1446  

Panama ends key canal deal with China, will work more closely with US

This move comes amidst a broader U.S. effort to counter China's growing global influence

Panama has announced it will end a key development deal with China and strengthen its ties with the United States. The decision follows a visit by U.S. Secretary of State Marco Rubio, who met with Panamanian President José Raúl Mulino.

President Mulino stated that Panama’s sovereignty over the Panama Canal remains paramount, but the country will not renew a 2017 memorandum of understanding to participate in China’s Belt and Road Initiative. Instead, Panama will focus on increasing collaboration with the U.S. Mulino expressed optimism that Rubio’s visit will foster new relationships and attract greater U.S. investment.

Secretary Rubio, in a post on X (formerly Twitter), emphasized the U.S.‘s commitment to preventing China from gaining further control over the Panama Canal. President Trump has previously voiced concerns about China’s influence over the canal and alleged that U.S. ships face exorbitant fees.

This move comes amidst a broader U.S. effort to counter China’s growing global influence. House Republicans have even introduced a bill proposing the repurchase of the Panama Canal by the United States. The bill highlights the canal’s strategic importance, noting that approximately 72% of vessels traversing it are bound for or originate from U.S. ports. The canal is also crucial for U.S. Coast Guard and Department of Defense operations. Without access, ships would face an 8,000-mile detour around South America.

Beyond the canal issue, Rubio’s discussions with Panamanian officials also covered strategies to address mass migration in the Western Hemisphere and ensure fair competition for American businesses.

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