Panama announced on Wednesday that the United States has affirmed its sovereignty over the Panama Canal, despite Washington’s strong rhetoric, as both nations reached agreements to expand U.S. military training in the country.
During his visit, U.S. Defense Secretary Pete Hegseth publicly acknowledged Panama’s control over the canal, marking the first visit by a Pentagon chief to the nation in decades. Hegseth emphasized that the canal is strategic territory that Panama and the U.S. would safeguard together—without Chinese involvement.
“We are assisting in reclaiming the Panama Canal from communist Chinese influence,” Hegseth stated during a press conference in Panama City.
The Panamanian government has firmly denied U.S. President Donald Trump’s claims that China controls the canal. However, U.S. officials and analysts argue that China’s presence in Panama poses security risks, citing concerns that Chinese-operated ports and infrastructure could facilitate military espionage.
As part of Hegseth’s trip, the U.S. and Panama issued joint statements on strengthening security cooperation. Notably, the Spanish-language version released by Panama included an explicit acknowledgment of Panama’s sovereignty over the canal—an assertion absent from the Pentagon’s English-language statement.
The omitted sentence read: “Additionally, Secretary Hegseth recognized Panama’s leadership and inalienable sovereignty over the Panama Canal and its surrounding areas.”
Speaking before his departure, Hegseth reiterated, “We fully respect Panama’s sovereignty and its control over the Panama Canal.”
He also expressed appreciation for Panama’s willingness to host U.S. forces for joint rotational exercises, while Panama’s Minister for Public Security, Frank Abrego, clarified that permanent U.S. military bases would not be allowed.
“In our private meeting, Secretary Hegseth recognized Panama’s sovereignty over the Panama Canal,” Abrego stated.
The canal remains vital to U.S. trade, handling over 40% of its container traffic—worth approximately $270 billion annually—and facilitating the transit of most vessels that pass through the world’s second-busiest interoceanic waterway.
Hegseth’s visit follows reports that the Trump administration has explored military options to ensure continued U.S. access to the canal, which the U.S. built over a century ago and transferred to Panama in 1999.
Trump has previously criticized the handover, calling it a poor deal for the U.S.
While Hegseth focused on countering “malign” Chinese influence in Panama, Trump has taken a broader stance, refusing to rule out military action.
A senior U.S. defense official, speaking on condition of anonymity, emphasized that Washington respects Panama’s sovereignty and recognizes the sensitivity surrounding the issue.
“Any perception of an infringement on their sovereignty—whether by the U.S. or China—would be extremely problematic,” the official noted.
Panama’s President Jose Raul Mulino, whom Hegseth met on Tuesday, has been a strong U.S. ally in countering Chinese influence. In February, Mulino formally withdrew Panama from China’s Belt and Road Initiative and has supported Trump’s immigration policies.
Hegseth praised Mulino’s leadership, saying, “We greatly value our partnership with Panama and its role in maintaining security in the region.”
