The US has praised Panama’s decision to step away from an Silk Road international development program led by China. Panama officially ended its participation in the Belt and Road Initiative, a project started by China in 2013 to fund global infrastructure projects. U.S. Ambassador to Panama, Kevin Marino Cabrera, commended the move, calling Panama the first country in the region to withdraw from the plan.
The U.S. Bureau of Western Hemisphere Affairs highlighted Panama’s action, noting it as a sign of shared values between the two nations. Officials described it as a reflection of both countries’ dedication to maintaining transparency, protecting national interests, and promoting long-term economic development.
Panama Ends Deal With China After Seven Years
The agreement between Panama and China dates back to November 2017, when both countries decided to strengthen diplomatic ties under then-President Juan Carlos Varela. That decision included joining China’s Belt and Road Initiative, a global infrastructure plan known for its large-scale construction projects backed by Chinese financing.
🚨Update: Panama surrenders!! “We’ll NOT renew agreement with China over Silk Route!” — Panama President after meeting Secretary Rubio!! USA! USA! USA!!🇺🇸🇺🇸🇺🇸 pic.twitter.com/eCdVjorPGG
— US Homeland Security News (@defense_civil25) February 2, 2025
President José Raúl Mulino announced on February 2 that Panama would not renew the agreement. His remarks followed a private meeting with U.S. Secretary of State Marco Rubio at the Palacio de las Garzas, the official presidential residence. Speaking afterward, Mulino confirmed that the agreement would expire without being extended.
The move marks a shift in Panama’s foreign policy and signals closer alignment with U.S. interests in the region. Panama was the first Latin American nation to join the Belt and Road, and now it becomes the first to leave.
U.S. Officials See Panama’s Withdrawal as Strategic Step
Ambassador Cabrera emphasized that Panama’s choice sets an example for other countries in the hemisphere. He shared his support through social media, shortly after the U.S. State Department publicly acknowledged the decision.
The Belt and Road Initiative, a key international strategy of Chinese President Xi Jinping, has attracted over 100 countries since its launch. While it promises growth through infrastructure investment, it has also drawn criticism over concerns about debt and influence. Many analysts believe Panama’s withdrawal may spark debate in other nations about the long-term impacts of similar agreements with China.
The United States sees Panama’s action as more than a diplomatic move. Officials believe it strengthens Panama’s control over its own development choices and reinforces shared principles between the two countries.
