PANAMA CITY: Panama has entered into a revised security agreement with the United States that permits the use of Panamanian military facilities by U.S. troops but explicitly rules out the creation of permanent American bases. This move comes amid national concerns about sovereignty and widespread public opposition.
The newly signed agreement marks a significant compromise, aligning with U.S. President Donald Trump’s efforts to reassert American influence over the Panama Canal, a critical global trade route.
Under the terms of the deal, U.S. military forces will be allowed to operate from Panama-controlled facilities for training missions, joint exercises, and other cooperative activities. However, the agreement does not grant permission for Washington to establish permanent bases on Panamanian soil — a step that remains controversial and potentially unlawful under local and international frameworks.
While the U.S. can deploy troops to some of the bases it originally constructed during its control of the canal zone, Panama retains full ownership and approval rights over any deployments.
Since his return to office, President Trump has voiced concerns about China’s increasing presence in the canal zone, which handles a significant portion of U.S. cargo and facilitates roughly 5% of global trade. His administration has openly declared intentions to reclaim influence over the canal, once managed by the United States until its handover in 1999.
Panama’s President José Raúl Mulino, speaking from Peru, confirmed that the U.S. had initially sought permanent base rights but was denied. He told U.S. Defense Secretary Pete Hegseth that such a provision would be unacceptable and could provoke public outrage. “Do you want to cause chaos? What we have agreed on already is enough to set the country ablaze,” he warned.
The final version of the agreement, signed by Hegseth and Panama’s Security Minister Frank Ábrego, includes safeguards for Panama. It confirms Panama’s sovereignty and ensures that the nation maintains control over any military installations. No deployment can proceed without Panama’s explicit approval.
Despite these provisions, many Panamanians remain skeptical, especially given Trump’s track record of renegotiating or abandoning international agreements. The memory of past U.S. involvement still lingers — particularly the 1989 U.S. invasion that ousted dictator Manuel Noriega and led to hundreds of civilian deaths.
Tensions have also risen over Chinese investment in Panama’s ports. Trump has criticized the influence of a Hong Kong-based company, Panama Ports Company, which has operated facilities at both ends of the canal for years. Under U.S. pressure, Panama has accused the company of violating contractual terms and is seeking its exit.
In response, the parent company CK Hutchison recently agreed to sell its global port assets — including its Panama holdings — to a U.S.-led consortium spearheaded by BlackRock in a $19 billion deal. China, angered by the transaction, has launched an antitrust investigation.
