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Hegseth, a Pentagon official, will visit the Panama Canal following Trump's threats to withdraw it

Posted to Maritime Reporter on April 8, 2025

U.S. Secretary of Defense Pete Hegseth will get a closer look at the Panama Canal as he begins a rare trip to Central America, a nation that is still uneasy about President Donald Trump’s threats to take the canal back.

Hegseth is the first U.S. Defense Secretary to visit Panama in decades. He arrives at a delicate time as Panama struggles with U.S. deep concerns over Chinese commercial investments near the canal.

The Trump administration is said to have asked the U.S. Military to provide options to guarantee access to the Panama Canal, which was built by the United States more than 100 years ago and given to Panama in 1999.

Hegseth’s visit is at risk, given Trump's rhetoric on retaking canal.

Panama will be looking for any indications of his intentions for the U.S. - Panama security relationship and the canal, where the United States had once established a military base network.

Ryan Berg, Director of the Americas Program, Center for Strategic and International Studies, said that "on the whole this has not been a successful issue for the United States when it comes to public diplomacy with Panama."

Experts and current and former U.S. government officials say that the United States found a willing partner to combat Chinese influence with Panama's President, Jose Raul Mulino.

Mulino, who announced Panama's formal exit from China's Belt and Road Initiative in February, has also aided Trump with his crackdown on migrants.

He accepted the deportation of non-Panamanians, and has worked to stop migrants from South America crossing his country's Darien jungle.

Hegseth did not make any public comments when he arrived late Monday in Panama.

He has, however, enthusiastically supported Trump's southern security agenda. This includes sending U.S. soldiers to the border of Mexico and providing military aircraft for deportation flight.

Trump falsely claims that China operates the canal and Chinese soldiers are present.

Experts acknowledge U.S. concerns about security, especially espionage. This is due to the large Chinese commercial presence in Panama, which includes plans for Chinese firms building a bridge across the canal.

Last month, Trump praised a deal led primarily by U.S. company BlackRock, which bought the majority of the $22.8 billion ports business of Hong Kong-based conglomerate CK Hutchison. This included its ports at either end of Panama Canal.

Trump claimed that the purchase is an example of the United States "reclaiming" canal.

China has criticised the deal, and the market regulator says it will conduct an antitrust investigation.

Former and current U.S. officials agree that the Panama Canal is essential for U.S. warships to transit from the Atlantic Ocean to the Pacific in support of any future conflict with Asia.

China would have a huge advantage even if it didn't block the canal by being able monitor vessels that pass through.

John Feeley, the former U.S. Ambassador to Panama between 2015 and 2018, disagreed with the Trump administration’s claim that China’s presence in Panama violated the U.S. Panama Treaty.

"What is not legit about Trump's approach is his bullying tactic, in which he claims that the neutrality agreement has been violated. Feeley stated that there hasn't.

Mulino has defended Panamanian administration of the Canal, stating that it was handled responsibly for the world trade, which includes that of the United States. Mulino also stated that the canal "is and will continue to remain Panamanian".

Over 40% of U.S. containers, worth approximately $270 billion per year, transit the Panama Canal. This is more than two thirds of the vessels that pass through this second busiest interoceanic canal in the world each day. (Reporting and editing by Clarence Fernandez; Reporting by Phil Stewart)

(source: Reuters)

Tags: North America South America Central America

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