PANAMA CITY, April 11 (Alliance News): The United States has signed a new agreement with Panama allowing its military forces access to several bases along the Panama Canal, in what analysts see as part of President Donald Trump’s broader strategy to reassert American influence over the crucial trade route.
The memorandum, signed Wednesday by US Defense Secretary Pete Hegseth and Panama’s Security Minister Frank Ábrego, permits US troops to use Panama-controlled military facilities for training, joint exercises, and other operations. However, the agreement stops short of granting the US permission to establish permanent military bases on Panamanian soil.
Under the deal, Panama retains control over the facilities and must approve any deployment of American troops. In return, Washington formally recognized Panama’s sovereignty over the canal zone — a point of tension following Trump’s earlier statements that left the door open to unilateral action.
President Trump has repeatedly voiced concerns over growing Chinese influence in Panama, particularly referencing the Hong Kong-based Panama Ports Company, which has operated strategic port facilities at both ends of the canal for years. His administration claims the canal, which handles around 40% of US container traffic and 5% of global trade, must be protected from foreign control.
Panamanian President José Raúl Mulino, currently visiting Peru, revealed that the US initially requested the right to build its own military bases — a proposal he rejected outright. “Do you want to create a mess? What we’ve put in place here would set the country on fire,” Mulino reportedly told Hegseth, citing domestic opposition and legal complications.
The new agreement has sparked public concern in Panama, with many citizens recalling the US invasion in 1989 to depose dictator Manuel Noriega, an event that left over 500 Panamanians dead and parts of Panama City destroyed.
Adding to the geopolitical tension, China has reacted sharply to recent developments. After US pressure reportedly led to Panama pushing out the Panama Ports Company, its parent company — Hong Kong’s CK Hutchison — agreed last month to sell its global port assets, including the Panama holdings, to a US-led consortium for $19 billion. Beijing has since announced an antitrust investigation into the deal.
While the new military arrangement does not allow for permanent US presence, it signals a marked shift in Washington’s posture in Central America and underscores growing rivalry between the US and China over strategic global infrastructure.
