By: Staff Writer
April 18, 2025
U.S. Defense Secretary Pete Hegseth, in a recent visit to Panama, announced in a speech that they have reached a landmark security cooperation agreement with Panama that promises to reshape the geopolitical landscape of the Western Hemisphere and curb China’s growing regional influence.
The agreement includes joint military exercises and an arrangement to prioritize U.S. warships in the canal, possibly offering a cost-neutral toll compensation scheme. While Panama insists it cannot legally offer “free” passage under existing neutrality treaties, Hegseth described the outcome as “first and free,” signaling a win for the Trump administration’s push to reassert influence in the region.
Hegseth also said: “We face shared security challenges and common threats. Together, we will deter them by increasing our defenses and achieving peace through strength. Since President Trump was elected, our two nations have done more to strengthen cooperation in a few months than we have in decades. And President Mulino, who we met with earlier, we have you to thank in large part for that as well.
“We’re partnering closely in three areas: first, securing our borders and stopping mass illegal migration. What Panama has done in the Darien Gap is incredible, crossings down 99 percent since a year ago. Second, we’re countering violent cartels and criminal enterprises. And third, we’re securing the Panama Canal and countering China’s malign influence. The Panama Canal is key terrain that must be secured by Panama with America and not China.”
The announcement comes after weeks of speculation that an earlier proposal would be scrapped with regard to the US backing the asset management firm Black Rock to purchase major port facilities from the Chinese backed CK Hutchinson Holdings with the latter opting to put the brakes on the proposal after Washington levied tariffs on Beijing.
Hegseth also said: “To that end, that is why the United States and Panama have just signed a memorandum of understanding on cooperative security activities, and will be signing, just moments after this press conference, a joint declaration with the Minister of Canal Affairs on the security and operation of the Panama Canal, which is a framework for US warship and auxiliary ships to sail first and free through the Panama Canal.
“Our expanded security relationship will also enhance cyber cooperation, information sharing, bilateral security dialogs and canal infrastructure improvements. These steps are going to help Panama deter and counter malign activity in the areas surrounding the canal. Our countries reaffirmed our shared commitment to protecting Panamanian sovereignty from malign influence. And we recognize the foundational importance of our constitutional government, including respect for our neutrality treaty.
“We’ve also been working closely with the Panama Canal Authority, and we will further increase our cooperation with each other. The Army — the US Army Corps of Engineers is one example. They were critical in building the canal over 120 years ago and have partnered closely with the Canal Authority for many years.