An agreement between Panama and the United States allows U.S. troops to conduct military exercises along the Panama Canal, though it does not permit the establishment of permanent military bases.
Under this new accord, U.S. forces will be stationed at several facilities within Panama’s control, with the details of the agreement, approved by “high-ranking officials,” being reported by AFP on Thursday, April 10.
The agreement allows U.S. military personnel to be based at Panama-controlled facilities for military training, exercises, and other activities, but it explicitly prohibits the creation of new military installations in the region.
Notably, the deal grants the U.S. the right to station troops at former U.S. military bases, which were constructed during Washington’s previous control of the Panama Canal. AFP suggests that this concession is seen as a significant move by U.S. President Donald Trump to reassert American influence over the strategically vital waterway.
Prior to the signing of the Panama Canal agreement, U.S. Secretary of Defense Mark Esper visited Panama. During his visit, he raised concerns about Chinese companies “continuing to control vital infrastructure in the canal zone,” a situation he suggested “gives China the ability to spy on what’s happening in Panama.”
Esper’s remarks likely referred to two major ports on the canal, managed by the Hong Kong-based CK Hutchison Holdings. Earlier in March, American investors reached a deal with the holding company to sell these ports, though a review by Chinese antitrust regulators has delayed the transaction.
Esper also promised that the U.S. would collaborate with Panama and other partners to reduce China’s influence over the canal and ensure it remains open to all countries. However, he contradicted Panama’s Minister for the Panama Canal, José Ramón Icaza, who stated that while the U.S. had agreed to free and duty-free passage for military vessels, Panama would still seek “compensation” for the passage of U.S. military ships.
