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 decision marks a setback for China’s influence in the region, as Panama was the first Latin American nation to join the initiative. Rubio warned that Panama’s ties with China risked violating the Panama Canal treaty. President Trump has previously criticized Panama for unfair canal fees and its growing relationship with China, suggesting the U.S. may seek control over the canal if violations are not resolved. The canal’s tolls can exceed $500,000 depending on vessel size.
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