U.S. Secretary of Defense Pete Hegseth has suggested that the United States could consider a return to a military presence in Panama, pending an invitation from the Central American country. The proposal was made during a two-day official visit to Panama and was met with a prompt rejection by Panamanian officials.
Hegseth indicated that the U.S. might seek to “revive” former military installations or establish rotational deployments of American troops in cooperation with Panama. He characterized the proposal as an opportunity for increased military collaboration and joint exercises.
“This is an opportunity to revive, whether it’s the military base, naval air station, locations where U.S. troops can work with Panamanian troops to enhance capabilities and cooperate in a rotational way,” Hegseth said.
However, Panama’s government clarified its position, stating that it would not permit foreign military bases or defense sites on its territory. “Panama made clear, through President [José Raúl] Mulino, that we cannot accept military bases or defense sites,” said Security Minister Frank Abrego during a joint appearance with Hegseth.
The discussion also included potential changes to how U.S. military vessels access the Panama Canal. Hegseth noted the U.S. was seeking a framework that would allow its navy ships to pass through the canal with priority and without charge. Panamanian officials responded by suggesting a “cost-neutral” mechanism for such services rather than exemption from fees.
“The aim is to establish a compensation system for services rendered, to make the passage of warships and auxiliary vessels cost-neutral but not free,” said Jose Ramón Icaza, Panama’s Minister for Canal Affairs.
The Panama Canal Authority (PCA), which manages the waterway independently, confirmed its commitment to equal treatment for all nations under current treaties. Vessels are charged based on cargo and capacity, regardless of origin. The PCA also noted that the U.S. government continues to recognize Panama’s sovereignty over the canal.
During his visit, Hegseth addressed broader geopolitical concerns in the region, particularly the growing influence of China in Latin America. He stated that the U.S. does not seek conflict with China but aims to deter what it perceives as strategic threats.
“We do not seek war with China. And war with China is certainly not inevitable,” Hegseth said. “But together, we must prevent war by robustly and vigorously deterring China’s threats in this hemisphere.”
Chinese officials responded by criticizing the remarks, accusing the U.S. of “maliciously attacking China” and engaging in what it described as coercive diplomacy.
Recent tensions have focused on the Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison, which operates terminals at both entrances of the canal. U.S. officials have questioned the company’s role, and Panama has raised concerns about alleged contractual noncompliance. The company has denied these allegations and rejected the findings of a recent audit, which claimed it owed $1.2 billion.
In March, CK Hutchison announced a deal to sell 43 of its global port assets—including those in Panama—to a consortium led by U.S. investment firm BlackRock for $19 billion. In response, Chinese regulators have launched an antitrust review of the transaction.
The U.S. previously maintained a long-term military presence in Panama until 1999, following decades of involvement in the construction, control, and operation of the canal. The most recent military intervention occurred in 1989 during an operation to remove then-leader Manuel Noriega, which resulted in significant casualties and damage in Panama City.
Stay updated with supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.
#PentagonUpdates #USMilitaryAbroad #PanamaDefense #SecurityStrategy #MilitaryPresence #Geopolitics #DefensePolicy
