Panama Set to Exit the Belt and Road (BRI) Initiative

Who Will Follow as the U.S. Pushes to Diminish Chinese Influence in Its Neighborhood?

On February 2, 2025, Panama announced a historic decision to exit China's Belt and Road Initiative (BRI), officially ending its participation in the massive global infrastructure program. This marks the first time a Latin American nation has withdrawn from the initiative, which has shaped the region’s infrastructure development over the past several years.

The announcement follows a visit by U.S. Secretary of State Marco Rubio, who underscored Washington’s concerns about China’s growing influence in the region, particularly in relation to the Panama Canal. Who will follow Panama as the U.S. seems determined to reduce Chinese influence in its own backyard? What can be expected from China’s response? However, Panama has insisted that the Panama Canal is not up for debate, despite Trump’s persistent calls to reclaim control of the Canal.

What’s Happening?

President José Raúl Mulino confirmed that Panama would not extend the Memorandum of Understanding (MoU) signed with China in 2017. The decision,