BOAO, March 28. /TASS/. Panama's exit from the China’s Belt and Road Initiative may reduce the country's clout as a key transport and logistical hub, ex-undersecretary of state at the Italy’s Ministry of Economic Development, Professor Michele Geraci told TASS.
"I think Panama, as every country, is free to choose what they like, but I think in relative terms it is a decision that is not really rational," Geraci said at the Boao Forum for Asia underway in the China’s Hainan Province from March 25 to 28.
Participation in Belt and Road projects is optional, the expert noted, adding that countries are free to do as they choose. "The Belt and Road is a free option. Those withdraw, they lose a free option," Geraci noted. . "The governments need to open path to do this, not close it. It's very silly to exit an agreement that has no obligation," he added.
Any speculation about Chinese plans to invest in the expansion of the Panama Canal can now be put to rest, Geraci continued. "Now they're not gonna to do it. So, maybe Panama loses its place as a bridge into Central America. Maybe China builds a port in Peru, but it's an entry port into the rest of South America from Peru," the expert added.
"There could be alternatives. A country needs to be very careful because things are not static," he added,
President of Panama Jose Raul Mulino said earlier this year that the country would not extend its participation in China’s Belt and Road Initiative. It previously signed an agreement to join the initiative in 2017.