After recent pressure from President Donald Trump, Panama appears to be distancing itself from the Chinese sphere of influence.
Panama’s government said it will not renew an agreement involving China’s foreign investment program, commonly called the “Belt and Road Initiative,” after Panamanian leaders met with U.S. Secretary of State Marco Rubio.
The Belt and Road Initiative is a global Chinese-backed infrastructure program. Rubio’s first official trip in his new capacity as America’s top diplomat was to the Latin American nation to address Trump’s concerns about the Panama Canal.
President Raúl Mulino reportedly indicated that the Chinese-Panamanian relationship may even be severed early and noted, “I think this visit opens the door to build new relations … and try to increase as much as possible US investments in Panama.”
Mulino made other concessions to Trump’s demands. He noted that Panamanian authorities will audit a company linked to China that operates two terminals around the canal.
“We have to wait until that audit ends before we can reach our legal conclusions and act accordingly,” Mulino concluded, per ABC Action News.
Moving the Panama Canal toward the American sphere of influence has been a priority of the Trump administration.
“President McKinley made our country very rich through tariffs … and gave Teddy Roosevelt the money for many of the great things he did, including the Panama Canal, which has foolishly been given to the country of Panama,” Trump said during his inaugural speech on January 20.
Trump recalled how the U.S. funded the canal construction, which then-President Jimmy Carter handed back to the small nation in 1977, adding, “We have been treated very badly from this foolish gift that should have never been made.”
The 45th and 47th President expressed a feeling of broken trust. “Panama’s promise to us has been broken,” Trump added.
He also hammered Panama for allegedly discriminating against American ships. “American ships are being severely overcharged and not treated fairly in any way, shape, or form. And that includes the United States Navy,” Trump said.
This apparent victory is one of many for the Trump administration in recent days. Other achievements include new agreements between America and Canada to foster enhanced border security.