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U.S. and Panama Strengthen Ties with New Defense Pact Amid Rising Chinese Influence

The U.S. and Panama sign a defense pact to safeguard the Panama Canal as Defense Secretary Hegseth warns of China’s expanding influence in the region.

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Overview

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A new defense agreement has been signed between the U.S. and Panama, aiming to bolster security over the Panama Canal amidst concerns regarding China's military presence. The deal reaffirms Panama's sovereignty, outlines military cooperation, and allows for U.S. warships to travel through the canal toll-free. Secretary of Defense Pete Hegseth stated this partnership is critical in countering China's growing power and influence in the Western Hemisphere. Concurrently, Panama Ports Company denies failing to pay $1.2 billion to Panama, asserting it has met investment obligations, amidst ongoing geopolitical tensions involving local infrastructure under Chinese control.

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The pact includes reaffirming Panama's sovereignty over the Panama Canal, outlining new military cooperation, and plans for toll-free priority passage for U.S. warships through the canal.

The U.S. seeks to counter China's perceived military and economic influence to ensure the security and sovereignty of the Panama Canal, which is critical for international trade and potential military strategies.

The U.S. and Panama will increase joint training operations, enhance cyber cooperation, and conduct more robust joint exercises to bolster their shared defense capabilities.

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