Defense Secretary Pete Hegseth secures preferential access for U.S. ships through the Panama Canal, pushing back against years of growing Chinese influence in America’s southern backyard.
At a Glance
- Hegseth negotiated a “first and free” passage agreement for U.S. vessels through the Panama Canal
- The strategic waterway handles over 40% of U.S. maritime trade
- China’s growing influence over the canal has been reversed through diplomatic efforts
- Panama has exited China’s Belt and Road Initiative following U.S. diplomatic pressure
- A comprehensive security partnership between the U.S. and Panama has been formalized
Strategic Victory for American Maritime Interests
Defense Secretary Pete Hegseth’s diplomatic mission to Panama has resulted in a major strategic victory for American interests, securing preferential “first and free” passage for U.S. vessels through the Panama Canal.
This agreement ensures that American warships and commercial vessels receive priority transit through this vital waterway, which handles over 40% of U.S. maritime trade and represents a critical chokepoint for both economic and military security. The agreement comes after years of increasing Chinese influence over the canal and surrounding infrastructure, which had raised significant national security concerns in Washington.
During his visit, Hegseth toured military bases and inspected canal operations before signing a pivotal accord with Panamanian officials. The agreement establishes not just preferential transit rights but also creates a framework for expanded security cooperation between the two nations.
This represents a significant shift in regional dynamics, with Panama now firmly aligning with American interests rather than pursuing closer ties with Beijing. The canal’s strategic importance cannot be overstated – its 50-mile waterway connecting the Atlantic and Pacific oceans saves ships from having to navigate around South America.
BREAKING: Huge Trump-Hegseth Win as U.S.-Panama Jointly Affirm Shift from China, Secure Canal Traffic, Address Migration. | Raheem J. Kassam, The National Pulse
The U.S. and Panama are rebooting their strategic partnership, ditching China’s influence and locking in a robust… pic.twitter.com/l3Jbkozsd2
— Owen Gregorian (@OwenGregorian) April 9, 2025
Countering Chinese Influence
The agreement represents a major reversal of fortune for Chinese ambitions in the region. For years, China had been steadily increasing its foothold around the Panama Canal through infrastructure investments, port acquisitions, and diplomatic initiatives. Secretary of State Marco Rubio successfully persuaded Panama to exit China’s Belt and Road Initiative, marking a significant diplomatic achievement. Additionally, a Hong Kong-based conglomerate recently sold two ports along the canal to a consortium led by American investment giant BlackRock, effectively transferring operational control from Chinese to American hands.
“This trip not only met but exceeded our expectations. A warm welcome from Panama. Great partnership. Spent a lot of time with their troops. I want to thank Panama for what they’ve done in the Darien Gap as well,” said Defense Secretary Pete Hegseth.
Beijing has responded with frustration to these developments, with Chinese state media accusing the United States of “blackmail” in its dealings with Panama. However, Hegseth expressed confidence in the strength of the U.S. position and dismissed concerns about potential Chinese retaliation.
The shift aligns with President Trump’s broader strategy of countering Chinese influence globally while strengthening traditional alliances. Senior defense officials noted that Trump’s emphasis on alliance-building has resonated with partners like Panama, creating opportunities for countries to realign with Washington.
Huge Panama Update!
Trump-Hegseth Win as U.S. – Panama Jointly Affirm Shift from China. Secure Canal
The U.S. and Panama are rebooting their strategic partnership, ditching China’s influence and employing a robust security upgrade on the Panama Canal.
U.S. Secretary of… https://t.co/9cZogfWqhU pic.twitter.com/MTo7S00Ovf
— ❣️Anne❣️ (@USA_Anne711) April 9, 2025
Enhanced Security Partnership
Beyond securing preferential passage rights, Hegseth’s trip resulted in a Memorandum of Understanding for cooperative security activities between the United States and Panama. This agreement establishes a framework for joint security operations, intelligence sharing, and military training exercises. The enhanced partnership will focus particularly on securing the canal from both conventional and asymmetric threats, including terrorism and cyber attacks. American military advisors will work closely with Panamanian forces to upgrade security protocols and technological capabilities around this crucial maritime chokepoint.
The agreement also addresses longstanding concerns about the Darien Gap, the lawless jungle region between Panama and Colombia that has become a major transit point for illegal migration toward the United States. Hegseth specifically thanked Panama for increased enforcement efforts in this area, suggesting that security cooperation extends beyond merely protecting the canal to addressing broader regional security challenges. This comprehensive approach reflects the administration’s strategy of tackling multiple security threats through strengthened bilateral relationships rather than through multilateral institutions.
