Secretary of Defense Pete Hegseth recently concluded a historic visit to Panama centered on deepening the US and Panama’s relationship and commitment to preserving US interests in the Panama canal.
The visit featured commitments from the Panamanian government to reduce Chinese influence over Panama, expand military cooperation with the US, and cease charging US military ships tolls for traversing the canal.
President Donald Trump has made it a priority to ensure US dominance over the Panama Canal and previously threatened to “take back” the canal if Panama did not take steps to distance itself from China.
Secretary Hegseth echoed President Trump’s worries over Chinese influence during a press conference in China.
“I want to be VERY clear,” said Hegseth. “China did not BUILD this canal, China does not operate this canal, and China will not weaponize this canal.”
Hegseth subsequently signed a memorandum of understanding with Panamanian authorities that commits the US and Panama to establish frameworks for issues including toll-free travel for US military ships and broader economic cooperation.
Prior to the Trump administration, military leaders warned of the Chinese Communist Party (CCP) surreptitiously gaining control of the Panama Canal by securing development projects in the canal via state-controlled Chinese companies.
In 2017, the CCP (CCP) established official relations with Panama - who became the first country to join its Belt and Road initiative - in a symbolic victory for the CCP given Central American countries have generally supported Taiwan over China.
Shortly following Trump’s threats and complaints over Chinese influence in the canal, however, Panama quickly began distancing itself from the CCP.
Panama President José Raúl Mulino pledged to terminate Panama’s participation in the CCP’s Belt and Road initiative, review CCP influence over the canal, and prioritize strong relationships with the US.
