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2w ago

U.S. and Panama Finalize Security Pact Granting Warships Priority Canal Passage

The agreement reaffirms Panamanian sovereignty while enhancing military cooperation to counter Chinese influence in the region.

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 13, 2025. (AP Photo/Matias Delacroix)
US Secretary of Defense Pete Hegseth, right, and Panama Canal Authority Administrator Ricaurte Vasquez, second from right, cross a bridge during a tour of the Panama Canal's Miraflores Locks in Panama City on Tuesday.
A gas cargo ship sails through the Miraflores Locks on the Panama Canal in Panama City, on April 8, 2025.
Trump and Pete Hegseth confirmed a bold U.S. military move in Panama to counter China’s growing grip.

Overview

  • The newly signed U.S.-Panama security pact provides American warships 'first and free' passage through the Panama Canal on a cost-neutral basis.
  • The agreement includes provisions for joint military exercises and rotational troop deployments but rules out permanent U.S. bases in Panama.
  • Panama's sovereignty over the canal is reaffirmed in the Spanish version of the joint statement, though the English version omits this language, highlighting diplomatic sensitivities.
  • The deal is part of the Trump administration's broader strategy to counter China's growing influence in Latin America, with U.S. officials emphasizing the canal's strategic importance.
  • Panama has exited China's Belt and Road Initiative and is reviewing Chinese-linked infrastructure deals, reflecting efforts to address U.S. concerns about Beijing's regional presence.