The US Secretary of Defense, Pete Hegseth, is set to visit Panama in April. High-level officials from Panama announced on Tuesday (February 4) that both countries will collaborate on combating illegal immigration and drug trafficking, with the potential to reach “significant agreements”.
Panama’s Minister of Security, Frank Abrego, confirmed on social media that he had a phone call with Hegseth on Tuesday and expressed anticipation for the visit in April, aiming to strengthen the strategic partnership between the US and Panama.
The Pentagon has not immediately responded to requests for comments from Reuters.
Hegseth’s visit could further enhance security cooperation between the US and Panama, reflecting Panama’s geopolitical choices amidst competition between the US and China. This move suggests that the US may exert a more proactive influence on issues concerning the Panama Canal, trade, and security.
In recent weeks, President Trump has repeatedly implied a desire to regain control of the Panama Canal. The Canal, initiated by the US in 1904 and opened for traffic in 1914, has become one of the most vital trade routes worldwide.
The US held control of the Panama Canal for 85 years until it was transferred to Panama in 1999 under the Panama Canal Treaties. However, the treaties specify that the canal must remain neutral post-transfer and be open to the passage of vessels from all nations globally. Additionally, Panama is not permitted to grant any third party rights or concessions that could affect the canal’s neutrality.
The treaties also acknowledge that the US and Panama share common interests in the safety and protection of the canal; if the neutrality of the canal is threatened, the US has the right to take action to safeguard it.
Trump has raised concerns that the Hong Kong-based company, “Cheung Kong Infrastructure”, has been granted operational rights by the Panamanian government, allowing them to oversee key ports at both ends of the canal for 25 years, and Chinese entities are involved in canal infrastructure and logistics management, posing a threat to the canal by the Chinese Communist Party.
After meeting with US Secretary of State Marco Rubio this week, Panamanian President Jose Raul Mulino pledged that Panama would no longer renew agreements related to China’s Belt and Road Initiative, considering an early exit and becoming the first Latin American country to withdraw from the initiative.
The Panama Canal Authority announced plans to “optimize” priority access for US vessels. According to the agency’s statistics, over 70% of the goods passing through the Panama Canal either originate from or are destined for the US.
The Panamanian government also intends to conduct a thorough investigation into the subsidiary companies of Hong Kong’s “Cheung Kong Infrastructure” operating key ports at both ends of the canal, demonstrating concern regarding the influence of Chinese entities.
These actions signify Panama’s adjustment of its foreign policy to strengthen relations with the US while reducing dependency on China.
Hegseth’s visit may further lead to increased US funding and training for Panama’s security forces to enhance border control and drug enforcement efforts. If realized, this could solidify the strategic partnership between the US and Panama, curbing China’s influence in Panama.
Hegseth’s visit will also send a clear signal to the entire Latin American region that the US intends to continue strengthening strategic cooperation in the area.