A new agreement has opened the door for U.S. troops to deploy to bases along the Panama Canal, a move that strengthens U.S. influence over a critical global trade route but stirs fears of eroded sovereignty in Panama.
Details of the Agreement
The deal, signed by top U.S. and Panamanian security officials, allows U.S. troops to use Panama-controlled facilities for training, exercises, and other activities. While it avoids granting the U.S. permanent bases—a proposal Panama’s President Jose Raul Mulino called “unacceptable”—it permits flexible deployments to bases once built by Washington during its control of the canal zone until 1999.

Trump’s Push and China Concerns
President Donald Trump has prioritized the canal, which handles 40% of U.S. container traffic, claiming excessive China influence through a Hong Kong-based company, Panama Ports Company, operating ports at both ends. Under U.S. pressure, Panama accused the firm of contract violations, prompting its parent company, CK Hutchison, to sell its ports to a U.S.-led consortium including BlackRock for $19 billion. Beijing’s subsequent antitrust review signals ongoing tensions.
Panama’s Sovereignty at Stake?
The agreement acknowledges Panama sovereignty, with deployments requiring Panama’s approval. However, Mulino rejected earlier U.S. requests for permanent bases, warning Pentagon chief Pete Hegseth that such a move could “set the country on fire.” Critics like trade union leader Saul Mendez call the deal a “setback to national sovereignty,” fearing it compromises Panama’s control over the canal, a symbol of national pride since the U.S. ceded it in 1999.
A Complex History
The U.S. and Panama share deep but fraught ties, marked by the U.S. occupation of the canal zone and the 1989 invasion that killed over 500 Panamanians to oust dictator Manuel Noriega. Trump’s Trump policy to “take back” the canal has fueled protests, with Panamanians wary of renewed U.S. dominance. The deal’s flexibility may test U.S.-Panama relations if Trump pushes for more control.
What Lies Ahead?
While the agreement avoids outright U.S. bases, it positions the U.S. to counter perceived threats in a vital waterway. For Panama, balancing cooperation with the U.S. and maintaining autonomy under President Jose Raul Mulino will be key. As global trade and geopolitics converge, the canal remains a flashpoint for power and pride.
Author: Planet-Today.com
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