US Defense Secretary Pete Hegseth recently visited Panama to discuss the security of the Panama Canal. He assured Panama that the US would continue to support the country’s sovereignty over the canal. He also emphasized the importance of both nations working together to protect this vital waterway. Hegseth expressed concerns about China’s growing influence in the region and its potential impact on the canal.
Strengthening US-Panama Partnership
Hegseth visited the Vasco Núñez de Balboa Naval Base in Panama during his trip. There, he spoke about the importance of keeping the canal safe from foreign threats. He explained that the US and Panama will work together to ensure the canal remains secure. Hegseth met with Panama’s President José Raúl Mulino to reaffirm the strong relationship between the two countries. He stressed that the US would continue to stand by Panama and support the country’s efforts to maintain control over the canal.
Concerns Over Chinese Influence
One of the key concerns raised during Hegseth’s visit was the growing presence of Chinese-linked companies in Panama. These companies manage important canal-area infrastructure. Some of the companies involved are part of a Hong Kong-based consortium that controls key ports at both ends of the canal. Recently, this consortium announced plans to sell its stake to a group that includes BlackRock Inc., an American investment firm.
Hegseth warned that Chinese-linked companies could use their control over infrastructure to conduct surveillance. This could potentially weaken Panama’s sovereignty and threaten the security of both Panama and the United States. He pointed out that the US has long been concerned about China’s increasing influence in the region.
US President Trump’s Concerns
President Donald Trump has expressed similar concerns. He has criticized the current arrangement, calling it “unacceptable.” Trump believes the US is being charged unfairly to use the canal. He has also accused China of exerting too much influence over the waterway. Trump has even suggested that the US might reclaim control over the canal, although Panama firmly rejects this idea.
Hegseth quoted Trump during his visit, reaffirming the US’s commitment to Panama’s sovereignty. He also highlighted the US’s strong support for Panama and its efforts to ensure the canal remains free from foreign control. Hegseth said that deeper cooperation between the US and Panama would help both countries remain safe and prosperous.
The Controversy Over the Canal’s Lease
One of the main issues in the current debate is the lease agreement between Panama and the Hong Kong-based consortium. The consortium’s 25-year lease over key ports at both ends of the canal has been a source of concern. Panama recently conducted an audit of the lease and uncovered irregularities. This has sparked further debates about the role of foreign companies in managing the canal’s infrastructure.
The consortium’s decision to sell its stake to BlackRock and other investors has raised more questions about the future control of the canal. While some US officials see this as an opportunity for American companies to become more involved, others are concerned about continued Chinese influence.
The US and Panama’s Ongoing Discussions
Hegseth’s visit was not the first time the US and Panama have discussed the canal. In February, Hegseth and Mulino had a phone call about the issue of fees for US warships using the canal. After the call, the US claimed that both countries had agreed to exempt American military vessels from certain fees. However, Mulino publicly denied any such agreement, adding to the tensions between the two nations.
Despite these disagreements, both countries are committed to maintaining the permanent neutrality of the canal. The Panama Canal Treaty, signed in 1977, ensures that no foreign power can control or militarize the waterway. This treaty remains a cornerstone of Panama-US relations and is unlikely to change.
What Lies Ahead for the Panama Canal?
The future of the Panama Canal remains uncertain. The growing influence of China in the region is likely to continue to raise concerns in both Panama and the US. However, both countries are committed to working together to ensure the canal’s security and sovereignty. The canal remains a vital part of global trade, and its control will continue to be a point of interest for the US and other nations.
As the situation unfolds, the US and Panama will likely continue their discussions. The involvement of Chinese-linked companies in canal infrastructure remains a key issue. The US will continue to push for stronger control over the canal to ensure that it remains secure and neutral.