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Panama Exits China’s Belt and Road Initiative

4 February 20251 min read
INTERNATIONAL AFFAIRSPanama ExitsChina’s Belt andRoad Initiative4 February 2025safalsetu.com

Why in the news

After US pressure and concerns voiced by Secretary of State Marco Rubio about China’s presence near the canal, Panama said it would quit China’s Belt and Road Initiative.

Key facts

  • No renewal of BRI participation after the agreement lapses in 2026; Panama is the first Latin American exit.
  • The Panama Canal Authority assured US Navy ships of free passage.
  • President Jose Raul Mulino said the canal will not be ceded, the control treaty stays valid and US military action is unlikely.
  • Trump had called Panama’s rates for US ships “exorbitant”.
  • Panama cut ties with Taiwan in 2017; China keeps gaining ground in the region despite US opposition.

About the Panama Canal

  • An 82-km man-made waterway across the Isthmus of Panama.
  • Shortens voyages between the two oceans and avoids the risky route around South America’s southern tip.
  • Seen as one of the largest engineering feats.

Exam angle

  • BRI: China’s infrastructure and investment programme.
  • Agreement expiry: 2026.

Test yourself

1. Panama became the first country of which region to opt out of China's Belt and Road Initiative?

Panama is noted as the first Latin American nation to exit the BRI.

2. How long is the Panama Canal, which joins the Atlantic and Pacific Oceans?

The notes describe it as an 82-kilometre artificial waterway.

3. Panama's current Belt and Road agreement with China is due to expire in which year?

Mulino said participation would not be renewed after the agreement ends in 2026.

This topic is part of Daily Current Affairs 4 February 2025 (14 topics).

All topics of the dayDay quizFebruary 2025

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