U.S. Moves to Block China from Panama Canal with New Military Pact

The United States and Panama have announced a broadened security partnership aimed at protecting the Panama Canal from what Washington describes as growing Chinese influence in the region.

Defense Secretary Pete Hegseth made the announcement today during a joint press conference with Panamanian Public Security Minister Frank Abrego, following a three-day security conference in Panama City.

“The era of capitulating to coercion by the communist Chinese is over,” Hegseth said. “Their growing and adversarial control of strategic land and critical infrastructure in this hemisphere cannot and will not stand.”

The new partnership was formalized through a memorandum of understanding signed earlier in the day. A separate declaration focused on the operation and security of the Panama Canal is expected to follow.

According to Hegseth, the upcoming declaration will allow U.S. warships and support vessels to move “first and free” through the canal, a move he said reflects “historic ties” between the two nations and deepens bilateral cooperation on canal security.

The agreement also paves the way for a rotational U.S. military presence at former American bases in Panama, including Rodman Naval Station, Howard Air Force Base, and Fort Sherman. Joint training will be expanded, including jungle warfare exercises at a revived operations center.

The broader agreement covers military interoperability, information sharing, cyber defense, and infrastructure enhancements.

“Our countries reaffirmed our shared commitment to protecting Panamanian sovereignty from maligned influence,” Hegseth said, adding that the security cooperation would also support border protection and counter-narcotics operations.

More than 1,000 U.S. personnel are currently deployed in Panama, including Navy cruisers, Coast Guard units, and a Marine infantry company. Hegseth also announced that the U.S. Navy hospital ship USNS Comfort will visit Panama this summer to provide medical support and reinforce diplomatic ties.

Hegseth praised Panama’s efforts to reduce illegal migration, citing a 99% decrease in crossings at the Darién Gap.

Meanwhile, in Washington, defense officials warned of broader global threats from China. John Noh, acting assistant secretary of defense for Indo-Pacific security affairs, told lawmakers that China is building up military, cyber, and space capabilities with the goal of displacing the U.S. globally.

Adm. Samuel Paparo, head of U.S. Indo-Pacific Command, echoed those concerns. “China’s aggressive behavior and rapid military modernization pose a real and serious threat to our homeland, to our allies and to our partners,” he said, citing a 300% increase in Chinese military activity around Taiwan in 2024.