The United States and Panama have solidified their partnership regarding the crucial Panama Canal through a series of agreements aimed at bolstering security and countering growing Chinese influence in the region.
Defense Secretary Pete Hegseth emphasized that these actions are essential for protecting American interests, stating, “We’re going to invest in ways that serve American interests in our backyard as we stop the sphere of Chinese influence.”
Key Components of the New Agreements:
* A joint declaration reaffirming Panamanian sovereignty over the canal.
* Enhanced military cooperation between the two nations.
* A cost-sharing model designed to ensure services provided to U.S. naval vessels and support ships remain “cost-neutral.”
* Plans for a framework guaranteeing U.S. warships preferential passage through the Panama Canal.
According to a statement from the Panama Canal Authority, the declaration “reaffirms respect for, and the recognition of, Panamanian sovereignty over the interoceanic waterway.” It also upholds existing legal frameworks governing canal operations, including the Neutrality Treaty, Panama’s Constitution, and the Canal’s Organic Law.
Hegseth highlighted the significance of securing these agreements. “It’s in our direct U.S. interest to ensure that waterway is free and that our ships can transit freely… it was two historic arrangements that serve American interests.”
Strategic and Economic Benefits:
* Prioritized Passage for U.S. Naval Vessels: The new arrangement aims to secure toll-free priority for American naval vessels, streamlining their passage through the canal.
* Cost Savings: Hegseth noted the deal offers an “economic upside,” saving taxpayer money while safeguarding strategic interests.
Hegseth’s visit included meeting with U.S. troops stationed in Panama and touring the canal itself. He expressed concern over China’s expanding presence in the Western Hemisphere, characterizing the situation as a “tug-of-war with the communist Chinese.”
These developments occur against the backdrop of escalating trade tensions between the United States and China. The White House has recently imposed significant tariffs on Chinese goods, reaching 145%. While engaging in this tariff exchange, the administration also announced reductions in tariffs for other nations that haven’t retaliated.
Despite the ongoing trade dispute, Hegseth expressed optimism, stating, “President Trump has a great relationship with Xi Jinping… I think, ultimately, what President Trump wants to do is reestablish American manufacturing and not be taken advantage of.”
The administration views these actions as critical in safeguarding U.S. strategic interests and countering China’s growing influence within the Western Hemisphere.
