HomeTopicsLatin AmericaUS Defense Chief’s Idea for Military Presence at Panama Canal Sparks Backlash

US Defense Chief’s Idea for Military Presence at Panama Canal Sparks Backlash

US Defense Secretary Pete Hegseth floated the idea on Wednesday of US troops returning to Panama to “secure” its strategically vital canal, a suggestion quickly shot down by the Central American country’s government.  Hegseth suggested during a visit to Panama that “by invitation” the United States could “revive” military bases or naval air stations and rotate deployments of US troops to an isthmus the United States invaded 35 years ago.

He also said his country was seeking free passage through the canal for its Navy ships — which US President Donald Trump had said were “severely overcharged and not treated fairly in any way, shape or form.” Trump, since coming to power in January, has repeatedly claimed that China has too much influence over the canal, which handles about 40 percent of US container traffic and five percent of world trade. 

His administration has vowed to “take back” control of the strategic waterway that the United States funded, built and controlled until 1999. Hegseth suggested on Wednesday the slew of former US military bases that dot Panama could be used again to host US troops. 

He said a deal signed with Panama this week was an “opportunity to revive, whether it’s the military base, naval air station, locations where US troops can work with Panamanian troops to enhance capabilities and cooperate in a rotational way.” Hegseth cited the possibility of “joint exercises” but the mention of a “rotational” force is likely to raise the hackles of Panamanians, for whom sole ownership of the canal is a source of intense national pride. 

The United States has long participated in military exercises in Panama. However, a longer-term rotational force — such as the one the United States maintains in Darwin, Australia — is politically toxic for Panama’s center-right leader Jose Raul Mulino.   His government quickly slapped down the idea.

“Panama made clear, through President Mulino that we cannot accept military bases or defense sites,” said Panama security minister Frank Abrego in a joint public appearance with Hegseth.

Perceived threat

Hegseth also said the United States was seeking an agreement under which its warships could pass through the canal “first, and free.” Jose Ramon Icaza, Panama’s Minister for Canal Affairs, said “we will seek a mechanism by which warships and auxiliary ships can have a compensation system for services, that is, a way to make them cost-neutral” but not “free.”

The independent Panama Canal Authority (PCA) that manages the waterway said in a statement on Wednesday that it was seeking a “cost-neutral scheme” to “compensate services rendered in security matters for warship tolls.” Under current treaties, the canal is open to all nations and all vessels must pay the same rates according to their capacity and cargo, regardless of their country of origin or destination.

The PCA said the United States recognized Panamanian sovereignty over the waterway, although Hegseth did not mention it in the news conference. The Pentagon chief’s two-day visit has been peppered with comments about China and its influence in Latin America.

He said the United States was not looking for war with China but would counter Beijing’s “threats” to the region. “We do not seek war with China. And war with China is certainly not inevitable. We do not seek it in any form,” Hegseth said. “But together, we must prevent war by robustly and vigorously deterring China’s threats in this hemisphere,” the former Fox News anchor said in a speech.

Bullying nature

China hit back after Hegseth’s comments, saying US officials “maliciously attacked China… exposing the United States’ bullying nature.” Trump has zeroed in on the role of a Hong Kong company that has operated ports at either end of the canal linking the Atlantic and Pacific oceans for decades.

Hegseth asserted that China-based companies are also capturing Latin American land and infrastructure in strategic sectors such as energy and telecommunications, and that China has too large a military presence in the hemisphere.  “Make no mistake, Beijing is investing and operating in this region for military advantage and unfair economic gain,” Hegseth said.

Under pressure from the White House, Panama has accused Hong Kong-backed Panama Ports Company of failing to meet its contractual obligations and pushed for the firm to pull out of the country. The firm rejected on Wednesday an audit that said it had failed to pay $1.2 billion due under its concession.

The ports’ parent company CK Hutchison announced last month a deal to offload 43 ports in 23 countries — including its two on the Panama Canal — to a consortium led by US asset manager BlackRock for $19 billion in cash. A furious Beijing has since announced an antitrust review of the deal.

The United States invaded Panama in 1989 to oust dictator Manuel Noriega, killing more than 500 Panamanians and razing parts of the capital. 

Trending Now

China Tops US in Latin America Influence for First Time

China's influence in Latin America is now viewed more positively than that of the United States, a major poll conducted in 17 Latin American...

The Costa Rica Bike Ride I Was Lucky to Survive

Two anonymous Ticos once prevented me from doing one of the more insane things I have ever thought of doing in my life. It...

Fruit, Roadside Traditions and the Seasons of Guanacaste

I’m not good with exact dates. Ask me when my boys were born or when I got married and you’ll see an uneasy look...

Costa Rica Extradites Alleged Meth Ringleader to Florida

Costa Rican authorities moved Farid Alberto Morales Araya, known as “Beto,” from La Reforma prison to Juan Santamaría International Airport early today as they...

Who Pays Tax on Rent in Costa Rica? The Numbers Don’t Add Up

Costa Rica counts 360,000 rented homes but only 32,373 registered rental income taxpayers, a figure that has barely moved since 2020.

Going to Iron Maiden at Estadio Nacional? What to Know Before Thursday

Gates open at 4 p.m. Thursday. Here's which entrance to use, what you can't bring in, and what tickets still cost.

Costa Rica Camera Traps Capture Margay, Pumas and River Otters

Over the last few years, I’ve worked my way up to the point where I have enough camera traps monitoring little patches of Costa...

Canadian arrivals in Costa Rica jump 24% as travelers skip the US

Canadian visits to Costa Rica are up 24% this year, and long stays are driving millions in new spending.

Costa Rica Red Cross Considers Ending Overnight Shifts at 20 Branches

The Costa Rican Red Cross is considering eliminating overnight shifts at 20 local branches as financial pressure continues to affect its emergency-response network. The...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel