Panama affirms sovereignty over canal, US deepens military ties amid China concerns

Nevin Al Sukari - Sana'a - US Secretary of Defence Pete Hegseth shakes hands with Panama’s President Jose Raul Mulino, in Panama City April 9, 2025. — Reuters pic

PANAMA CITY, April 10 — Panama said yesterday the United States recognised its sovereignty over the Panama Canal, despite tough rhetoric from Washington, as the two nations announced agreements to deepen US military training in the Central American nation.

US Defence Secretary Pete Hegseth also gave a public nod to Panamanian sovereignty at the conclusion of the first visit by a Pentagon chief to Panama in decades. Hegseth said he sees the canal as key terrain that Panama would secure together with the US — and not with China.

“We are helping to take back the Panama Canal from communist Chinese influence,” Hegseth told a press briefing in Panama City.

The Panamanian government has strongly rejected US President Donald Trump’s allegations that the key waterway is controlled by China.

But current and former US officials and experts say the United States has legitimate security concerns about China’s presence in Panama, including that ports and other infrastructure held by Chinese firms could be used for military espionage.

During Hegseth’s visit, the US and Panama issued joint statements about deepening security cooperation. But the Pentagon’s English-language version did not include a sentence that was in the Spanish-language version published by Panama that spoke about Panama’s sovereignty over the canal.

The sentence read: “In addition, Secretary Hegseth recognised the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas.”

Speaking to reporters shortly before boarding his flight back to Washington, Hegseth said: “We certainly respect the sovereignty of the Panamanians and the Panama Canal.”

He expressed gratitude that Panama has welcomed US troops on Panamanian soil “by invitation through rotational, joint exercises.”

Panama’s minister for public security, Frank Abrego, said Panama would not allow permanent military bases.

“Secretary Hegseth, in the meeting we had in private, recognised the sovereignty of Panama over the Panama Canal,” he told reporters.

More than 40 per cent of US container traffic, valued at roughly US$270 billion (RM1.2 trillion) a year, goes through the Panama Canal, accounting for more than two-thirds of vessels passing each day through the world’s second-busiest interoceanic waterway.

Hegseth’s trip followed reports that the Trump administration has requested options from the US military to ensure access to the canal, which the United States built more than a century ago and handed over to Panama in 1999.

Trump has complained that handing over the canal was a bad deal for the United States.

While Hegseth spoke about working with Panama to remove “malign” Chinese influence, Trump has spoken in broader terms and not ruled out using military force.

A US defence official, speaking to reporters on condition of anonymity, said the US understood and respected Panama’s sensitivities regarding its sovereignty.

“Any sense or spectre of infringement on their sovereignty, or any suspicion of ‘taking’ I guess by anyone — whether it would be the US or the Chinese — is hugely problematic,” the official acknowledged.

Current and former US officials and experts say the United States has found a willing partner in tackling Chinese influence in Panama’s president, Jose Raul Mulino, whom Hegseth met on Tuesday.

In February, Mulino announced Panama’s formal move to exit China’s Belt and Road Initiative and he has aided Trump’s crackdown on migrants.

Hegseth repeatedly praised Mulino, saying his government understood the threat from China.

“We are deeply grateful for the friendship of our Panamanian counterparts, your partnership and your leadership here in Panama and across the region,” Hegseth said. — Reuters