Panama Agrees To Ditch China, Renew Better Relations With U.S. Under Trump
Charlie Kirk Staff
02/03/2025

The Panamanian government will renew better diplomatic relations with the United States and will not renew an agreement to take part in China’s “Belt and Road Initiative” after meeting with Secretary of State Marco Rubio over the weekend.
José Raúl Mulino, the president of Panama, stated that his country’s sovereignty over the 51-mile waterway connecting the Pacific Ocean to the Caribbean Sea will remain intact. However, he also announced that he would not be renewing a 2017 memorandum of understanding to join China’s Belt and Road Initiative (BRI).
Instead, Panama intends to seek closer cooperation with the United States following complaints by then-President-elect Donald Trump that U.S. vessels were getting overcharged for using the strategic Panama Canal that U.S. engineers and laborers built last century, Fox News reported.
As part of the agreement, U.S. Navy ships will be able to traverse the canal without having to pay a duty, saving between $2.5-$3 million a year.
“I think this visit opens the door to build new relations … and try to increase as much as possible U.S. investments in Panama,” Mulino told reporters after meeting with Rubio during his first trip abroad in his new role.
Rubio, who was a senator representing Florida before Trump tapped him to become America’s top diplomat, said his team is ready to push the U.S. agenda.
“Had the pleasure of meeting the incredible @USEmbPAN team during my first embassy meet and greet in my new role as Secretary of State!” Rubio wrote in a post on X. “Thankful for their dedication and ongoing efforts to promoting President Trump’s vision of an America First foreign policy.”
During his visit, Rubio wrote in a post on X that “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.”
Trump has criticized China for exerting control over the canal and imposing six-figure premiums on U.S. ships crossing Panama’s isthmus. The canal, constructed by the U.S. over several decades and completed in 1914, was handed over to Panama during the Carter administration.