New Security Agreement Strengthens US-Panama Ties Over Canal Amid Growing Chinese Influence

New Security Agreement Strengthens US-Panama Ties Over Canal Amid Growing Chinese Influence

The United States and Panama have formalized a new defense and security agreement designed to enhance control over the strategically vital Panama Canal. This initiative, announced amid rising tensions with China, is seen by many as essential for curtailing Beijing’s influence in the region.

On Wednesday night, the Panama Canal Authority confirmed the signing of a joint declaration by Panama’s Minister for Canal Affairs and U.S. Defense Secretary Pete Hegseth. This agreement not only reaffirms Panamanian sovereignty but also outlines a framework for increased military cooperation.

Reaffirming Sovereignty and Cooperation

The newly signed deal emphasizes respect for Panamanian sovereignty over the interoceanic waterway. As stated by the Canal Authority, the pact upholds the commitment to the Neutrality Treaty and the legal structures that govern operations, including Panama’s Constitution, the treaty, and the Canal’s Organic Law.

The declaration signifies more than mere assurances. It introduces a cost-sharing model aimed at covering services provided to U.S. warships and auxiliary vessels, with intentions of maintaining a cost-neutral arrangement. The goal is clear: to develop a compensation mechanism for military services, which will be assessed in collaboration with Panama’s Ministry of Security.

Future Frameworks for U.S. Naval Operations

Hegseth announced that efforts are underway to create a broader framework ensuring U.S. warships receive a toll-free passage through the Panama Canal. This memorandum of understanding aims to establish a formal agreement prioritizing the movement of American naval vessels.

Meanwhile, the Canal Authority stated that this agreement serves as a foundational step in developing a more comprehensive model for military and logistical cooperation, which will evolve in subsequent stages.

Strategic Military Coordination

As the United States bolsters its military presence, the Panama Canal Authority noted that their collaboration already encompasses critical sectors, such as engineering, security, and cybersecurity. These areas are focal points for both governments as they strategize to counter foreign interference, particularly from China.

In the context of reinforcing alliances, the U.S. is preparing to deploy the USNS Comfort, a Navy hospital ship, to the region. This deployment stands as a testament to America’s commitment to partnership and stability in Central America.

Warnings About Chinese Influence

During the announcement, Hegseth delivered a stark warning regarding China’s expanding influence in the Western Hemisphere. He visited U.S. troops stationed in the area, engaged with Panamanian officials, and performed a tour of the canal itself.

Hegseth emphasized that China’s activities pose significant threats, stating that Beijing is not merely investing but actively operating in the region for both military advantage and economic gain. He highlighted that China maintains military facilities and has extended its reach into local domains, impacting the very sovereignty of Panama and the surrounding nations.

He stated emphatically that China’s extensive fishing fleets harm local economies and erode food security, painting a grim picture of the implications of Chinese presence.

Preventing Conflict Through Deterrence

Despite the aggressive stance against Chinese operations, Hegseth clarified that the objective is not warfare. Instead, he underscored the necessity of deterring potential conflicts by presenting a united front against perceived threats in the hemisphere.

Tackling Chinese Infrastructure Control

Hegseth made it clear that the United States aims to address Chinese-controlled infrastructure within Panama. This infrastructure raises significant concerns regarding privacy and national security.

He remarked that continued control by China over critical infrastructure in canal areas allows for possible surveillance activities that jeopardize both Panama’s and the U.S.’s security, prosperity, and autonomy. Hegseth quoted former President Donald Trump’s sentiments on this unacceptable situation.

A Committed Defense Partnership

Reiterating the importance of the agreement, Hegseth asserted that the U.S. will not permit China to jeopardize the operations of the canal. He stated unequivocally that the recent weeks have seen a level of cooperative defense and security between the United States and Panama that has not occurred in decades.

Despite increasing military collaboration, Panamanian President José Raúl Mulino publicly denied claims suggesting that China controls the canal. In a decisive rebuttal, Mulino expressed his commitment to national sovereignty amid ongoing dialogue about the canal’s future and its governance.

During an address, he rejected assertions made by the U.S. State Department regarding guarantees for toll-free passage for U.S. warships. The Canal Authority affirmed that there have yet to be adjustments made to its fee structure, aiming to maintain transparency amidst the evolving geopolitical climate.

Overall, the signing of this new security agreement represents a significant development for both nations, reinforcing ties and seeking a collaborative approach to address shared concerns over external influences in Central America.