The United States (U.S.) and Panama, say they are working on an agreement that would give U.S. Navy vessels free and priority access to the Panama Canal.
The U.S. Defence Secretary, Pete Hegseth, said this during a visit to the Central American country on Wednesday.
Minister of the Panama Canal, José Ramón Icaza, said that, while his country could not legally grant special passage rights to any single nation, the two countries were discussing a mechanism of “compensation for services’’.
The talks came as the President Donald Trump’s administration sought to reduce what it saw as growing Chinese influence in the canal, a statement Panama rejects.
Trump had repeatedly claimed that the waterway should return to U.S. control.
Hegseth said the U.S. was determined to secure the Panama Canal against “China’s malign influence’’ during a joint news conference with Panama’s Minister of Public Security, Frank Ábrego.
Hegseth said that Washington had welcomed the opportunity to have an increased troop presence in the country alongside Panamanian forces to help secure the canal’s sovereignty.
He said when he was asked by a reporter whether the U.S. recognised Panama’s sovereignty over the canal.
“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 U.S. and Panama,’’ Hegseth said.
Both governments also agreed to strengthen military cooperation, the ministers said.
The Panama Canal was built by the U.S. in the early 20th century, but the sovereignty over the canal zone was fully returned to Panama at the end of 1999.
