Thu Apr 10 16:57:03 UTC 2025: ## US Defense Secretary’s Proposal to Re-Establish Military Presence in Panama Met with Resistance

**Panama City, Panama –** US Defense Secretary Pete Hegseth’s suggestion to re-establish a US military presence in Panama, including potentially reviving former military bases, has been swiftly rejected by the Panamanian government. Hegseth’s proposal, made during a visit to Panama on Wednesday, April 9, 2025, included the possibility of rotating US troop deployments and securing preferential treatment for US Navy ships passing through the Panama Canal.

Hegseth’s comments, echoing concerns voiced by President Donald Trump about Chinese influence over the canal, have sparked a diplomatic clash. Trump’s administration has accused China of wielding excessive control over the strategically important waterway, which handles a significant portion of US and global trade. Hegseth cited the possibility of joint military exercises, but the suggestion of a rotational force, similar to the US presence in Darwin, Australia, proved particularly contentious for Panama.

Panamanian President Jose Raul Mulino and Security Minister Frank Abrego firmly rejected the proposal, emphasizing Panama’s commitment to sole ownership and control of the canal, a matter of significant national pride. Panama’s Minister for Canal Affairs, Jose Ramon Icaza, clarified that while the country is open to discussing compensation mechanisms for warship passage, it will not offer free transit.

The independent Panama Canal Authority (PCA) also issued a statement reiterating Panama’s sovereignty over the waterway and its commitment to equal treatment for all vessels, regardless of nationality. While the PCA acknowledged US recognition of Panamanian sovereignty, Hegseth’s comments notably omitted any mention of it.

Hegseth also addressed concerns about China’s growing influence in Latin America, stating that while the US does not seek war with China, it will actively counter what it perceives as threats to the region. This prompted a rebuke from China, which accused the US of bullying tactics. The US is also pressuring Panama to sever ties with the Hong Kong-backed Panama Ports Company, a move fueled by accusations of unmet contractual obligations and allegations of Chinese strategic investment in Latin American infrastructure. A recent $19 billion deal to sell off the Panama Ports Company, including its operations at the Panama Canal, to a US consortium has further inflamed tensions with China, which has launched an antitrust review of the transaction.

The US invasion of Panama in 1989, resulting in significant loss of life, remains a sensitive point in Panamanian-US relations, adding further complexity to the current diplomatic standoff.

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