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Panama Becomes the First Latin American Country to Withdraw from China’s Belt and Road Initiative (BRI).

International | Dated: 07 Feb 2025

In February 2025, the President of Panama, José Raúl Mulino Quintero, announced that Panama will not renew its participation in China’s Belt and Road Initiative (BRI), making it the first Latin American country to exit the global infrastructure program.

🎯 Key Highlights:

  • - The decision was made following a visit from United States (US) Secretary of State Marco Antonio Rubio, during which Panama faced pressure over its economic ties with China.
  • - Panama originally joined the BRI in 2017, but concerns over the high costs of projects and the financial strain of repaying loans led to increasing criticism of the initiative.
  • - India has strongly opposed the China-Pakistan Economic Corridor (CPEC) due to its route passing through Pakistan-occupied Kashmir (PoK), a region that is an integral part of India.

💡 Other Important Facts:

  • (i) The Belt and Road Initiative (BRI) was launched by China’s President Xi Jinping in 2013 as a global infrastructure and investment project aimed at expanding China's global influence. It focuses on developing extensive land and sea trade routes connecting Southeast Asia, Central Asia, the Gulf region, Africa, and Europe.
  • (ii) The BRI involves over 140 countries, making China a key trading partner for many nations. Its flagship project, the China-Pakistan Economic Corridor (CPEC), is a USD 60 billion venture linking Gwadar Port (Pakistan) to Xinjiang (China), spanning 3,000 km with infrastructure, railways, and energy developments.
  • (iii) In 2023, Italy withdrew from the BRI amid concerns from the United States (US) over China's growing economic influence. Recently, Panama also exited the BRI, becoming the first Latin American country to do so.

📚 Test Your Knowledge:

Which country recently became the first Latin American nation to withdraw from China’s Belt and Road Initiative (BRI)?

Correct Answer: Panama

🚀 Quick Recap:

About Panama

  • President : José Raúl Mulino Quintero
  • Capital : Panama City