U.S. and Panama Strengthen Ties with New Canal Agreement

U.S. Defense Secretary Pete Hegseth announced a new agreement allowing U.S. warships priority, toll-free passage through the Panama Canal, aiming to counter China’s influence in the region.

In a significant move to bolster military cooperation and reduce China’s influence over the Panama Canal, U.S. Defense Secretary Pete Hegseth revealed that the U.S. and Panama have signed a framework agreement. This deal ensures that U.S. warships and auxiliary vessels will have priority and toll-free passage through the canal, a strategic waterway crucial for global trade and military operations.

Hegseth’s announcement comes after a period of tension and clarification regarding U.S. access to the canal. Earlier this year, statements from U.S. Secretary of State Marco Rubio about securing free passage for U.S. warships were refuted by Panamanian President José Raúl Mulino and the Panama Canal Authority, who denied any such agreement had been reached.

The new agreement marks a shift in the dynamics of U.S.-Panama relations, especially in the context of China’s growing military and economic presence in the Western Hemisphere. Hegseth criticized China’s activities, stating that their military presence is ’too large’ and that they are exploiting the region for military advantage and economic gain. He emphasized that the U.S. aims to prevent war by deterring China’s threats in the hemisphere.

To further strengthen ties and assert U.S. influence, the U.S. plans to deploy the USNS Comfort, a Navy hospital ship, to the region. This move is part of a broader strategy to ’take back’ the Panama Canal from Chinese influence, particularly in light of port operations controlled by Hong Kong-based CK Hutchison.

The agreement and subsequent actions are seen as a direct response to China’s increasing involvement in Panama, including the operation of critical infrastructure near the canal. Hegseth’s comments and the new agreement have sparked a war of words with China, which has criticized the U.S. for what it calls a ‘sensationalistic campaign’ aimed at sabotaging Chinese-Panamanian cooperation.