US and Panama Expand Military Cooperation Amid China Concerns

The United States and Panama have solidified a new defense and security agreement aimed at reinforcing control over the Panama Canal. This move occurs amidst growing concerns about China's influence in the region. The agreement allows for the deployment of American troops to Panama-controlled facilities for joint training, exercises, and other cooperative activities.

Defense Secretary Pete Hegseth has emphasized the importance of this partnership. He stated that it is crucial for countering what he describes as China's growing grip on the strategic waterway. Hegseth's visit to Panama included discussions about deepening security cooperation, highlighting the U.S. commitment to maintaining its access to the canal.

Key Aspects of the Agreement

The agreement includes several key provisions. It reaffirms Panama's sovereignty over the Panama Canal. It also establishes a framework for enhanced military coordination. The declaration lays out plans for a cost-sharing model to cover services provided to U.S. warships and auxiliary vessels, aiming for a "cost-neutral basis.".

Hegseth also mentioned a broader framework in development. This framework would guarantee U.S. warships "first and free" passage through the Panama Canal. The Panama Canal Authority confirmed that collaboration already encompasses "engineering, security, and cybersecurity," which are key focus areas for both governments.

Panama's Stance on US Military Bases

Despite the strengthened security ties, Panama has firmly rejected the establishment of permanent U.S. military bases within its territory. President Jose Raul Mulino has stated that Panama cannot accept military bases or defense sites. This position reflects a commitment to maintaining Panamanian sovereignty over the canal.

Mulino emphasized that while Panama welcomes joint exercises and cooperation with the U.S., it will not allow for the establishment of permanent bases. This decision underscores the delicate balance Panama seeks to maintain between its security partnership with the U.S. and its national sovereignty.

Geopolitical Implications

This agreement comes amid increasing U.S. focus on countering Chinese influence in Latin America. The Panama Canal is a vital waterway for global trade, handling approximately 40% of U.S. container traffic and 5% of global trade. The U.S. sees the canal as a key strategic asset. They aim to ensure its security and accessibility in the face of growing Chinese economic and logistical presence in the region.

Secretary Hegseth has warned that Beijing's presence in the Western Hemisphere is already too significant and continues to expand. The U.S. is taking steps to strengthen its partnerships and security arrangements in the region. This is to counter what it perceives as potential threats to its interests and maintain stability in the area.