Defense Secretary Pete Hegseth suggested the possibility of reestablishing a U.S. military presence in the country to help secure the Panama Canal, a proposal that was swiftly rejected by local officials.
Speaking alongside Panamanian authorities at a press conference in the country, Hegseth said that "by invitation" the U.S. could "revive" former military installations such as bases or naval air stations. He framed the idea within the context of increasing security cooperation with Panama and responding to growing concerns the Trump administration has expressed over China's influence in the region.
"This is an opportunity to revive, whether it's the military base, naval air station, locations where U.S. troops can work with Panamanian troops to enhance capabilities and cooperate in a rotational way," Hegseth stated. He also expressed a desire for U.S. warships to gain "first, and free" access through the canal.
Panama's government, however, immediately pushed back through Security Minister Frank Ábrego. "Panama made clear, through President Mulino, that we cannot accept military bases or defense sites," said the official, echoing comments made by Jose Raul Mulino back in March in which he claimed that "there will be no military bases from any power, be it the United States or any other part of the world.
The Panama Canal, which the U.S. handed over to Panama in 1999, remains a sensitive symbol of national sovereignty. The suggestion of any renewed U.S. military presence has stirred political opposition, with joint military exercises seen as acceptable, but a rotational deployment akin to U.S. forces in Australia deemed politically untenable.
Hegseth's comments come amid broader U.S. concerns about China's strategic positioning in Latin America. During his trip he also accused Beijing of using "unfair economic gain" and military investments to expand its influence, referencing the Hong Kong-backed Panama Ports Company's operations at both ends of the canal.
While Panama's Canal Affairs Minister, Jose Ramón Icaza, left open the possibility of a "cost-neutral" mechanism for warship transit, he stressed that passage would not be free. The Panama Canal Authority reiterated that all vessels, regardless of nationality, pay standardized tolls.
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