Panama City, February 3, 2025 – Panama has decided not to renew its Belt and Road Initiative (BRI) agreement with China, signaling a shift in its foreign policy. The decision follows growing US pressure on Latin American nations to reconsider their ties with China’s infrastructure projects. Panama’s government stated that it aims to diversify trade partnerships and focus on projects aligned with national interests.
The move strengthens US-Panama relations, as Washington has expressed concerns over China’s expanding influence in the region. Panama, which joined the BRI in 2017 to attract Chinese investments, now cites geopolitical tensions and debt risks as reasons for withdrawal. Analysts suggest this decision could influence other Latin American countries to reconsider their involvement in China’s global initiatives.