US defense secretary proposes to revive military bases in Panama

In early April 2025, U.S. Secretary of Defense Pete Hegseth met with Panama's President José Raúl Mulino to discuss enhancing security cooperation between the two nations. This meeting came amid rising tensions related to U.S. concerns over China's influence in the Panama Canal. Hegseth credited Mulino for improving security collaboration, emphasizing the importance of both nations working together for mutual safety and prosperity. Following their discussions, he floated the idea of the U.S. military potentially returning to Panama to secure the canal. This suggestion, however, was quickly rejected by the Panamanian government, which underscored their sovereignty and pride in owning the canal. The dialogue around military presence also follows claims made by U.S. President Donald Trump regarding Panama overcharging for canal usage, as well as concerns about China's leasing of port facilities near the canal. Hegseth suggested that former U.S. military bases could be revived for housing U.S. troops if invited by Panama, allowing for joint military exercises and better cooperation. However, Panama's security minister Frank Abrego immediately dismissed the idea, asserting that the nation would not accept foreign military bases on its land. The ongoing skepticism of U.S. intentions is a sensitive matter for Panama, given their historical context and the pride surrounding their control of the canal since 1999. In light of these discussions, the U.S. Defense Secretary indicated a desire for a faster, cost-free passage for U.S. warships through the canal, contrasting with Panama's statement that they would seek compensation for these services. This emphasizes the complexity of the relationship, with national pride on one side and strategic interests on the other. U.S. interests in the canal are critical, considering that nearly 40 percent of U.S. container traffic flows through this vital waterway. Hegseth's comments were made during a visit where U.S.-financed projects, such as a new dock on a former U.S. base, were also highlighted, showcasing ongoing economic ties alongside military considerations. Ultimately, this situation encapsulates the larger geopolitical competition between the U.S. and China in Latin America, where historical negotiations and national sentiments collide, warranting careful navigation by both diplomatic entities in maintaining a beneficial partnership without compromising national sovereignty.