The United States and Panama are working on an agreement that would give US Navy vessels free and priority access to the Panama Canal, US Defense Secretary Pete Hegseth said during a visit to the Central American country on Wednesday.
Minister of the Panama Canal José Ramón Icaza said that, while his country cannot legally grant special passage rights to any single nation, the two countries were discussing a mechanism of "compensation for services."
The talks come US President Donald Trump's administration seeks to reduce what it sees as growing Chinese influence in the canal — a statement Panama rejects. Trump has repeatedly claimed the waterway should return to US control.
Hegseth said the US was determined to secure the Panama Canal against "China's malign influence" during a joint press conference with Panama's Minister of Public Security Frank Ábrego.
When asked by a reporter whether the US recognizes Panama's sovereignty over the canal, Hegseth said Washington welcomed the opportunity to have an increased troop presence in the country alongside Panamanian forces to help secure the canal's sovereignty.
"We certainly understand that the Panama Canal is in Panama. 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.
Both governments also agreed to strengthen military cooperation, the ministers said.
The Panama Canal was built by the US in the early 20th century, but the sovereignty over the canal zone was fully returned to Panama at the end of 1999.
