Panama agrees to allow US warships to travel ‘first and free’ through canal
Defense Secretary Pete Hegseth announced on Wednesday that the United States and Panama officials were set to sign a “framework” agreement that would grant U.S. warships priority and toll-free passage through the Panama Canal. Hegseth revealed that a memorandum of understanding on security cooperation had already been signed between the two countries, and a final document guaranteeing the free passage of U.S. warships and auxiliary vessels through the canal would soon be finalized.
This announcement comes after Secretary of State Marco Rubio’s visit to Panama earlier in the year, where the State Department claimed to have secured a deal for the free passage of U.S. warships. However, Panamanian President José Raúl Mulino denied the existence of such an agreement at the time. The Panama Canal Authority also stated that no adjustments had been made to its fee structure.
Hegseth, during his visit to Panama, expressed concerns about China’s significant military presence in the Western Hemisphere. He emphasized that China’s operations in the region were aimed at gaining military advantage and unfair economic benefits. Highlighting China’s military facilities, ground stations, and exploitation of natural resources, Hegseth warned of the implications of China’s activities in the Western Hemisphere.
In an effort to counter China’s influence in the region, the U.S. plans to deploy the USNS Comfort, a Navy hospital ship, to strengthen military ties with Panama and reassert its influence over the canal. Hegseth reaffirmed the U.S.’s commitment to deterring China’s threats in the hemisphere and preventing war through robust defense measures.
The U.S. aims to “take back” the Panama Canal from Chinese influence, particularly pointing to port operations controlled by Hong Kong-based CK Hutchison. Despite a recent deal for the sale of ports to U.S.-based BlackRock, tensions have escalated, with China criticizing the agreement and opening antitrust probes. Panamanian officials have accused CK Hutchison of contractual violations and owed payments to the country.
Hegseth, following discussions with Panamanian officials, emphasized the need to protect the canal’s operations from external threats. The U.S. and Panama have intensified their defense and security cooperation in recent weeks to bolster their mutual interests and sovereignty.
China’s embassy in Panama retaliated against the U.S.’s allegations, dismissing them as sensationalistic and aimed at undermining Chinese-Panamanian cooperation. The escalating tensions between the U.S. and China in Panama reflect the broader trade war between the two countries, with significant tariffs imposed on each other’s goods.
The strategic significance of the Panama Canal and the ongoing efforts to counter Chinese influence underscore the complex geopolitical dynamics at play in the region. As the U.S. and Panama seek to strengthen their defense cooperation, the implications of China’s presence in the Western Hemisphere remain a critical concern for regional stability and security.
