Under a newly forged agreement between Washington and Panama, United States troops will be granted access to a series of military bases situated along the Panama Canal for training exercises and other operational activities, a move widely interpreted as part of President Donald Trump’s strategy to reassert influence over the strategically vital waterway.
The agreement, formalized by top security officials from both nations, permits US military personnel to deploy to Panamanian-controlled facilities for the purposes of training, exercises, and “other activities.”
While the deal stops short of authorizing the United States to establish its own permanent military bases on the isthmus – a move that would likely face strong opposition from Panamanians and encounter significant legal hurdles – it grants the US broad authority to deploy an unspecified number of personnel to existing bases, some of which were originally constructed by Washington during its decades-long occupation of the canal zone.
Since returning to power in January, President Trump has repeatedly asserted that China holds excessive influence over the canal, which handles approximately 40 percent of US container traffic and five percent of global trade.
His administration has pledged to “take back” control of the strategic waterway that the United States funded, built, and controlled until its handover in 1999.
The United States has a long history of participating in military exercises within Panama.
However, the establishment of a longer-term rotational force – similar to the US military presence in Darwin, Australia – could prove politically damaging for Panama’s center-right leader, José Raúl Mulino.
‘Country on fire’
Mulino, speaking from Peru on Thursday, revealed that the United States had requested the establishment of its own military bases within Panama.
Mulino stated that he informed visiting Pentagon chief Pete Hegseth that US bases, which were permitted under an earlier draft of the agreement, would be “unacceptable.”
He warned Hegseth: “Do you want to create a mess? What we’ve put in place here would set the country on fire.”
In the revised “Memorandum of Understanding,” signed by Hegseth and Panama’s security chief Frank Ábrego on Wednesday, Panama secured certain concessions.
The United States recognized Panama’s sovereignty – a point that was not guaranteed given Trump’s refusal to rule out a potential invasion – and Panama will retain control over all installations.
Furthermore, Panama will be required to approve any deployments of US personnel.
However, given President Trump’s track record of unilaterally altering or withdrawing from trade deals, treaties, and agreements, these assurances may offer little comfort to concerned Panamanians.
The country has a long and complex relationship with the United States, characterized by close cultural and economic ties despite the decades-long US occupation of the canal zone and the US invasion 35 years ago to oust dictator Manuel Noriega, an invasion that resulted in the deaths of over 500 Panamanians and the destruction of parts of the capital city.
Trump’s vow to reclaim the canal and his assertions of Chinese influence have triggered mass demonstrations within Panama.
By law, Panama operates the canal with open access granted to all nations.
However, the US president has specifically focused on the role of a Hong Kong-based company that has operated ports at both ends of the canal – connecting the Atlantic and Pacific Oceans – for several decades.
Under pressure from the White House, Panama has accused the Panama Ports Company of failing to meet its contractual obligations and has pushed for the firm’s withdrawal from the country.
The ports’ parent company, CK Hutchison, announced last month an agreement to sell off 43 ports in 23 countries – including its two facilities on the Panama Canal – to a consortium led by US asset manager BlackRock for $19 billion in cash.
An angered Beijing has since announced an antitrust review of the deal.
