A new agreement between the US and Panama will allow American troops to return to the strategic Panama Canal for training exercises, though Panamanian officials firmly reject any permanent military presence as Defense Secretary Pete Hegseth suggests reviving former US bases.
Key Takeaways
- A memorandum of understanding has been signed allowing US troops to be stationed along the Panama Canal for training exercises, but not permanent bases.
- Defense Secretary Pete Hegseth has proposed reviving former US military installations including Fort Sherman, Rodman Naval Station and Howard Air Force Base for rotational deployments.
- Panama’s leadership, including Security Minister Frank Abrego and President José Raúl Mulino, have firmly rejected any permanent US military presence on Panamanian soil.
- President Trump has threatened to retake control of the canal if Panama doesn’t lower fees for American ships, particularly expressing concerns about China’s influence in the region.
- The Panama Canal, transferred to Panamanian control in 1999, remains vital to global commerce with ongoing disputes about transit fees and sovereignty.
Strategic Military Cooperation without Permanent Presence
The United States and Panama have entered into a memorandum of understanding that would allow American troops to be stationed along the Panama Canal for training purposes. This agreement stops short of establishing permanent military installations, a point of contention between the two nations. The deal comes as the Trump administration has expressed strategic concerns about the vital waterway, which handles significant global trade flows, particularly regarding Chinese influence in the region and transit fees for American vessels.
Defense Secretary Pete Hegseth outlined the agreement’s scope during recent statements, emphasizing the revival of former US military installations for rotational deployments rather than permanent bases. These include Fort Sherman, Rodman Naval Station, and Howard Air Force Base, which were transferred to Panama following the implementation of the 1977 Carter-Torrijos Treaties that returned canal control to Panama in 1999. The agreement focuses on joint training exercises and operational coordination between American and Panamanian forces.
JUST IN – Panama deal allows US to deploy troops to canal — The document, signed by top security officials from both countries, allows US military personnel to deploy to Panama-controlled facilities for training, exercises and a range of other activitieshttps://t.co/lCOAVmZbUA
— Insider Paper (@TheInsiderPaper) April 11, 2025
Panama’s Firm Stance on Sovereignty
Panamanian officials have responded forcefully to suggestions of a permanent American military presence. Security Minister Frank Abrego articulated the government’s position clearly, stating: “Panama made clear, through President Mulino, that we cannot accept military bases or defense sites.” This stance reflects deep-seated concerns about national sovereignty that date back to the long period of American control over the Canal Zone, which ended with the canal’s transfer to Panama in 1999.
The Panamanian government has shown willingness to discuss cooperation on security matters while maintaining firm boundaries regarding sovereignty. Jose Ramón Icaza, representing Panama in negotiations, proposed “a mechanism by which warships and auxiliary ships can have a compensation system for services, that is, a way to make them cost-neutral but not free.” This contrasts with American desires for preferential treatment of military vessels, reflecting ongoing tension over canal administration.
Regional Tensions and Chinese Influence
The renewed American interest in Panama comes amid increasing concerns about Chinese influence in Latin America. Secretary Hegseth explicitly mentioned countering China during his visit, stating: “We do not seek war with China. And war with China is certainly not inevitable. We do not seek it in any form. But together, we must prevent war by robustly and vigorously deterring China’s threats in this hemisphere.” This geopolitical dimension adds complexity to discussions about canal security and regional partnerships.
President Trump has claimed China has too large a presence near the canal, assertions denied by both Panama and Chinese authorities. The administration has also pressured Panama regarding the Hong Kong-backed Panama Ports Company, which operates key facilities. Recently, CK Hutchison, the parent company of Panama Ports, announced plans to sell its canal port operations to a US-led consortium, potentially shifting the balance of commercial influence at this strategic chokepoint. However, Chinese regulators recently placed the deal on hold, casting doubts over the transfer. The timing of military cooperation talks alongside commercial negotiations highlights the intertwined nature of economic and security interests in the region.
Historical Context and Future Implications
The relationship between the United States and Panama has a complex history. The US invaded Panama in 1989 to remove dictator Manuel Noriega, an operation that resulted in significant casualties for Panama. The 1977 treaty signed by President Jimmy Carter that returned the canal to Panama in 1999 represented a major shift in relations. The current discussions about military cooperation take place against this historical backdrop, with many Panamanians sensitive to perceived infringements on national sovereignty.
The implementation timeline for the new agreement remains unclear. While the memorandum of understanding establishes a framework for cooperation, specific details about when American troops might deploy to Panama for exercises have not been announced. The agreement appears designed to enhance security coordination while respecting Panama’s sovereignty, striking a delicate balance between American strategic interests and Panamanian independence in managing what remains one of the world’s most important maritime chokepoints.
