Panama said on Wednesday the United States recognized its sovereignty over the Panama Canal, despite tough rhetoric from Washington, as the two nations announced agreements to deepen U.S. military training in the Central American nation.
U.S. Defense Secretary Pete Hegseth, in the first visit by a Pentagon chief to Panama in decades, said he sees the canal as key terrain that Panama would secure together with the U.S. - and not with China.
"We are helping to take back the Panama Canal from communist Chinese influence," Hegseth told a press briefing in Panama City. The Panamanian government has strongly rejected U.S. allegations the key waterway is controlled by China.
But current and former U.S. officials and experts say the United States has legitimate security concerns about China's presence in Panama, including that ports and other infrastructure held by Chinese firms could be used for espionage.
During Hegseth's visit, the U.S. and Panama issued joint statements about deepening security cooperation. But the English-language version published by the Pentagon did not include a sentence that was in the Spanish-language version published by Panama that spoke about Panama's sovereignty over the canal.
The sentence read: "In addition, Secretary Hegseth recognized the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas."
Asked whether he recognized Panama's sovereignty, Hegseth said: "We certainly understand that the Panama Canal is in Panama, and protecting Panamanian sovereignty from malign influence is important."
"Which is why when President Trump says we're taking back the Panama Canal from Chinese influence that involves partnership with the United States and Panama," Hegseth said.
"And we're grateful that they've welcomed U.S. troops on Panamanian soil by invitation through rotational, joint exercises."
Panama's Minister for Public Security Frank Abrego said Panama would not allow permanent military bases.
"Secretary Hegseth, in the meeting we had in private recognized the sovereignty of Panama over the Panama Canal," he told reporters.
More than 40% of U.S. container traffic, valued at roughly $270 billion a year, goes through the Panama Canal, accounting for more than two-thirds of vessels passing each day through the world's second-busiest interoceanic waterway.
Hegseth's trip followed reports that the Trump administration has requested options from the U.S. military to ensure access to the canal, which the United States built more than a century ago and handed over to Panama in 1999.
Trump has complained that was a bad deal for the United States.
While Hegseth spoke about working with Panama to remove "malign" Chinese influence, Trump has spoken in broader terms and not ruled out using military force.
Current and former U.S. officials and experts say the United States has found a willing partner in tackling Chinese influence in Panama's President Jose Raul Mulino, whom Hegseth met on Tuesday.
In February, Mulino announced Panama's formal move to exit China's Belt and Road Initiative and he has aided Trump's crackdown on migrants.
Hegseth praised Mulino, saying his government understood the threat from China, and his remarks during his trip about Panama being in the lead on addressing the canal's security concerns appeared to be a nod to Panamanian sensitivities.
"We are deeply grateful for the friendship of our Panamanian counterparts, your partnership and your leadership here in Panama and across the region," Hegseth said.
