Panamanian President José Raúl Mulino announced that Panama will not renew its agreement with China’s Belt and Road Initiative after meeting with U.S. Secretary of State Marco Rubio. This move is a blow to China’s influence, as Panama was the first Latin American country to join the initiative.

Rubio cautioned that Panama’s ties with China could “violate the Panama Canal treaty.” The U.S. has long expressed concerns over China’s involvement, with former President Trump criticizing Panama for “unfair canal fees” and deepening relations with Beijing.

The Panama Canal, a key global trade route, charges tolls that can exceed $500,000 depending on vessel size. Trump previously suggested that the U.S. “may seek control over the canal” if treaty violations arise.

Mulino’s decision aligns Panama more closely with U.S. interests, reinforcing American influence in the region.