On 8 and 9 April 2025, the United States reached agreements with Panama that finalized the process of return of US geopolitical influence to the strategically crucial Central American country that President Trump had launched at the start of his second term by putting pressure on Panama to prioritize American geopolitical interests over the Chinese ones.
The two countries agreed that “the expedited transit of warships and auxiliary vessels” of the United States through the Panama Canal would be guaranteed under what US defense secretary Hegseth called a “first and free” framework.
The two sides also agreed on a rotational presence of American military forces at the Panamanian bases including Rodman Naval Station, Howard Air Force Base and Fort Sherman. Among other purposes, the US military presence at the bases will “enable aerial and maritime interdiction missions.”
Other bilateral arrangements include “information sharing, enhanced cyber cooperation, bilateral security dialogues and canal infrastructure improvements.”
The US-Panama military and security cooperation agreements come on the heels of Panama’s recent decision to withdraw from China’s Belt and Road Initiative as well as its facilitation of China’s loss of commercial control of two Panama Canal ports.
In sum, over the period from late January to early April 2025, the United States largely succeeded in negating the Chinese influence in Panama that Beijing had been slowly building up for years.
This development is particularly significant due to the Panama Canal’s critical importance in case of a future direct full-scale war between the US and China.
Efforts Category: US Diplomatic Pressure on Panama