The government of Panama has announced plans to terminate a key infrastructure agreement with China and strengthen its partnership with the United States. The decision follows high-level discussions with U.S. officials, including a recent visit by Senator Marco Rubio, as Washington pushes for stronger ties in the region.
Panama’s leadership confirmed that the country will no longer move forward with certain projects previously agreed upon with China, particularly those related to the strategic Panama Canal. Officials cited a desire to prioritize cooperation with the U.S., emphasizing security and economic interests that align more closely with American policies.
The shift comes amid growing concerns over Beijing’s influence in Latin America, with U.S. lawmakers urging regional governments to reconsider agreements that could give China greater control over critical infrastructure. The Panama Canal, a major global trade route, has been a focal point in discussions over foreign investment and security risks.
Panamanian authorities have assured that ongoing projects will be reevaluated to ensure they align with national interests, while new agreements with the U.S. will focus on economic development, trade, and security cooperation. American officials have welcomed the decision, calling it a positive step toward strengthening diplomatic and economic relations.
With tensions rising between global powers over influence in Latin America, Panama’s move signals a realignment in its foreign policy strategy. Further discussions between Panamanian and U.S. officials are expected in the coming weeks to finalize new agreements and establish a framework for continued collaboration.