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Discover how Panama's decision to cancel the agreement with China, under pressure from the US, could impact the future of the Panama Canal and alter geopolitical relations in Latin America.
Understand the motivations and consequences of this strategic change regarding the Panama Canal.
The President of Panama, José Raul Mulino, officially announced in February 5, 2025 that the country had left the New Silk Road, an ambitious economic program led by China that finances global infrastructure works.
Therefore, the cancellation of the economic agreement with China represents a significant change in Panama's international relations. This occurs especially in the face of increasing pressure from the United States (US) about Latin American countries that maintain agreements strategic with the Chinese government.
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The information was released by G1 portal. The portal highlighted the relevance of the decision for the region.
History of the New Silk Road and Panama's Accession
A New Silk RoadAlso known as Belt and Road Initiative (BRI), is global initiative of China launched in 2013 by the president Xi Jinping. The goal is to expand its influence through infrastructure investments, including roads, railways and ports.
Therefore, the Panama became the first country in Latin America to join the program in June 2017 during the government of Juan Carlos Varela.
However, the government of mill decided to terminate the agreement. The president claimed that the decision reflects the “national sovereignty” and “best interest of the Panamanian people”.
Despite the president's statements, experts from the Center for Strategic Studies believe that the US pressure played a crucial role in the decision.
On the other hand, the American president Donald Trump, who resumed the presidency in January 2025, expressed concern about growing Chinese influence in the region. This concern is especially in relation to the strategic Panama Canal.
The Panama Canal and the Struggle for Influence
Thus, Trump suggested in recent speeches that the US could intervene to ensure that the channel, vital to global trade, remained outside the indirect control of Chinese interests.
O Panama Canal, opened in August 15th, 1914, connects the Atlantic Ocean to the Pacific. The channel represents a fundamental navigation route.
However, the possibility of the China exert influence over this infrastructure generated diplomatic tensions. These tensions have arisen since the signing of the agreement in 2017.
Still, the Panamanian government denied any foreign involvement in the administration of the canal. The government also criticized the US State Department statements, classifying them as “false and unfounded”, as reported by Reuters Agency.
The Regional Impact: How the Country’s Exit Affects Latin America
A Panama's decision to leave the New Silk Road Raise questions about the future of relations between China and Latin America.
Therefore, the cancellation may influence other countries in the region who also participate in the Chinese economic programLike Venezuela and Equador. This can generate a domino effect in global infrastructure deals.
With this choice, the Panama demonstrates a closer alignment to the United States. This alignment can redefine geopolitical strategies in Latin America.
By the way, Washington views Chinese influence in the region with suspicion, especially through programs such as New Silk Road. The US seeks contain China's expansion in the Western Hemisphereaccording to the New York Times.
International Reaction and Future Consequences
Now, the world watches how China will react to this decision and yes other countries will adopt the same stance.
Lastly, analysts and world leaders are closely monitoring the impact of this departure No. development of global infrastructure. They also monitor the international economic relations, as discussed in reports from the World Economic Forum.
