Why It Matters:
This decision reflects the growing tension between U.S. and Chinese influence in Central America, particularly regarding strategic assets like the Panama Canal, which is crucial for global trade.
The Big Picture:
Since taking office, Trump has consistently criticized Panama for its ties to China, claiming that the country has violated the terms of the 1999 agreement that transferred control of the canal from the U.S. to Panama. The U.S. has expressed concerns over China's increasing presence in the region, which it views as a threat to its interests.
What He Is Saying:
Trump reiterated his stance, stating that the canal was given to Panama "foolishly" and warned that "something very powerful" would happen if control was not returned to the U.S. He accused Panama of allowing China to operate the canal.
Key Points:
- Panama’s President Jose Raul Mulino decision to withdraw from the China deal came during a meeting with U.S. Secretary of State Marco Rubio, who warned of potential U.S. retaliation if Chinese influence was not curtailed.
- The Panamanian president emphasized that his country’s sovereignty was not negotiable, despite U.S. pressures.
- Panama is conducting an audit of a Chinese-linked company operating terminals around the canal, indicating a cautious approach to foreign investments.
- Protests erupted in Panama City during the meeting, with demonstrators expressing their desire for national sovereignty and opposition to U.S. interference.
Go Deeper:
Trump has taken a hardline approach on China, viewing the Belt and Road Initiative as a means of expanding China influence in Latin America at the expense of U.S. interests.
As Panama navigates these geopolitical tensions, the outcome of its audit of the China-linked company and its future diplomatic relations will be closely watched.
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