The United States has recognised Panama’s sovereignty over the Panama Canal, according to Panamanian officials, as the two countries agreed to expand military cooperation amid shared concerns about Chinese influence.
The announcement followed a visit by US Defence Secretary Pete Hegseth, the first Pentagon chief to visit Panama in decades. Speaking in Panama City, Hegseth described the canal as “key terrain” and pledged that the United States would support Panama in securing it.
“We are helping to take back the Panama Canal from communist Chinese influence,” Hegseth said during a press briefing, referring to concerns over Chinese investments in infrastructure around the waterway.
Panama has consistently rejected claims that the canal is under Chinese control. However, US officials and analysts argue that Chinese firms operating nearby could pose security risks, including espionage.
During the visit, the two nations issued joint statements committing to deeper defence cooperation.
A sentence in Panama’s Spanish-language version, not included in the English-language version from the Pentagon, stated: “Secretary Hegseth recognised the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas.”
When pressed by reporters, Hegseth said: “We certainly understand that the Panama Canal is in Panama, and protecting Panamanian sovereignty from malign influence is important.”
Panama’s Minister for Public Security, Frank Abrego, confirmed that Hegseth recognised Panama’s canal sovereignty in private talks. He also reiterated that Panama would not host permanent US military bases, though rotational exercises would continue.
The canal, one of the world’s busiest interoceanic waterways, sees over two-thirds of its daily traffic from US-linked vessels. More than 40 per cent of US container trade, valued at $270 billion annually, transits the route.
Hegseth’s visit comes amid reports that the Trump administration has considered options to secure long-term US access to the canal. President Trump has previously criticised the 1999 transfer of the canal to Panama, calling it a bad deal.
President Jose Raul Mulino, who met with Hegseth during the visit, has taken steps to distance Panama from China, including exiting the Belt and Road Initiative in February. He has also aligned with Trump’s regional migration and security policies.
Hegseth praised Panama’s stance, saying its leadership recognised the strategic risks posed by Beijing.
“We are deeply grateful for the friendship of our Panamanian counterparts, your partnership, and your leadership here in Panama and across the region,” he said.
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