A setback for Beijing’s multi-billion infrastructure initiative: Panama has officially informed China that it is withdrawing from the Belt and Road Initiative (BRI).
Beijing reacted with regret and sees this as “a change in the geopolitical situation in Latin America”, reports the Beijing media group Caixin.
Panama’s President José Raúl Mulino explained that his government had informed China of the withdrawal 90 days in advance in accordance with the established agreements. An extension of participation is not planned. According to Mulino, the decision has nothing to do with the recent US visits to Panama, but was made independently of them. Mulino is calling for a new assessment of the economic benefits of the BRI, but emphasizes that diplomatic relations with China will remain.
Chinese Foreign Ministry spokesman Lin Jian expressed his regret at a press conference. He accused the USA of using coercive measures and pressure to undermine cooperation within the framework of the BRI.
At the same time, the Panama Canal Authority (ACP) rejects the US State Department’s claim that Panama has agreed to waive transit fees for the US. It emphasizes that no fee reductions have been made.
Nevertheless, the ACP is prepared to negotiate with the USA on the transit of military ships. However, these only account for 0.3% of total traffic. President Mulino criticizes the US representations as “simply unacceptable” and clarifies that the actual annual channel fees for US flagships are between $6 and $7 million.
–- Hansa.newsGlobal
