Breaking News: U.S. Defense Secretary proposes military presence in Panama as US warships gain canal priority.

Citing information published by the U.S. Department of Defense on April 11, 2025, the United States and Panama have entered into a landmark defense agreement that significantly boosts military cooperation and grants U.S. warships and auxiliary vessels “first and free” access through the Panama Canal. The agreement, signed during U.S. Defense Secretary Pete Hegseth’s recent visit to Panama, is being positioned as part of a broader strategy to enhance regional security, strengthen bilateral defense ties, and counter China’s growing influence near one of the world's most strategic maritime corridors.

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U.S. Defense Secretary Pete Hegseth, Panamanian President José Raúl Mulino, and Public Security Minister Frank Alexis Abrego sign a landmark memorandum of understanding in Panama City on April 9, 2025, outlining a framework for cooperative security activities, including joint training exercises, humanitarian missions, and temporary deployments, as part of enhanced bilateral defense cooperation. (Picture source: Source U.S. DoD but with added editing Army Recognition Group)

During his visit, the U.S. Defense Secretary Hegseth proposed the possibility of reestablishing a U.S. military presence in Panama by reviving former installations such as Howard Air Force Base and Rodman Naval Station—key sites during the U.S. administration of the Canal Zone. He framed the suggestion within the context of increasing security cooperation with Panama and growing concerns from the Trump administration regarding Chinese expansion in Latin America, particularly through infrastructure investments and port control operations near the canal. The proposal, however, was swiftly and firmly rejected by Panamanian officials, who emphasized that while Panama welcomes cooperation, the return of permanent foreign military forces would violate its sovereignty and the 1977 Torrijos-Carter Treaties.

Despite the diplomatic tension over the military presence suggestion, the core agreement marks a significant strategic development. The new framework includes a Memorandum of Understanding on cooperative security activities and a Joint Declaration on the security and operation of the Panama Canal. These documents grant the U.S. Navy toll-free, priority passage through the canal, ensuring U.S. naval forces can rapidly move between the Atlantic and Pacific oceans without delays or detours. This capability is vital for maintaining strategic flexibility and readiness in an era of growing geopolitical competition.

Beyond canal access, the agreement authorizes U.S. forces to operate from three key Panamanian facilities—Panamá Pacífico International Airport (formerly Howard Air Force Base), Vasco Núñez de Balboa Naval Base (formerly Rodman Naval Station), and Cristóbal Colón Naval Air Base. While Panamanian authorities assert that these are not permanent bases, the deployment of U.S. personnel and equipment has already begun. Recent joint exercises included the deployment of over 1,000 U.S. troops, a Marine infantry company, and four F-18 fighter jets. Additionally, the U.S. Navy hospital ship USNS Comfort is expected to dock in Panama for humanitarian missions, and plans are underway to revive the multinational PANAMAX exercise in 2026, signaling a deepening defense alliance.

This intensified cooperation comes at a time of mounting U.S. concern over China's role in critical infrastructure near the canal. Chinese companies, such as CK Hutchison, operate key ports at both ends of the waterway, raising U.S. fears over potential intelligence-gathering or coercive leverage. The Trump administration has pressed allies across Latin America to distance themselves from Chinese investments, and Panama recently withdrew from China’s Belt and Road Initiative and launched audits into existing contracts with Chinese firms.

While the security agreements have been praised in Washington as a strategic win, they have ignited controversy within Panama. Opposition lawmakers and civil society groups have criticized the lack of transparency surrounding the deals and warned that they could erode national sovereignty. Protests have erupted in several cities, with demonstrators labeling the renewed U.S. presence a “camouflaged invasion” and a step backward to the days of foreign military dominance.

Nonetheless, the agreements represent a decisive shift in the defense posture of the Americas. For the United States, they reestablish vital maritime and operational advantages at a time of increasing great-power rivalry. For Panama, they offer security assurances and deeper integration with a long-standing ally—but also carry the burden of navigating domestic concerns and the enduring shadow of geopolitical influence.

As U.S. warships begin to sail “first and free” through the canal and military cooperation deepens, the region enters a new era—one shaped not only by strategic necessity but by the complex interplay of history, diplomacy, and power.