[UNITED STATES] According to a bilateral agreement seen by Agence France-Presse on Thursday, US forces would be permitted to deploy to a network of bases along the Panama Canal, a significant concession to President Donald Trump as he strives to regain authority over the key canal.
The agreement comes amid heightened geopolitical tensions in the region, particularly as China has deepened its economic and infrastructural ties with Panama in recent years. In 2017, Panama severed diplomatic relations with Taiwan in favor of Beijing, a move that signaled a strategic pivot and raised concerns in Washington. The new military arrangement is widely seen as a counterbalance to China’s growing presence in Central America, a region traditionally within the US sphere of influence.
The agreement, signed by top security officials from both countries, allows US military personnel to train, exercise, and engage in "other activities" in Panama-controlled locations.
While the deal does not explicitly mention China, analysts note that its timing aligns with the Trump administration’s broader efforts to curb Beijing’s global infrastructure ambitions, including the Belt and Road Initiative. Panama’s participation in China’s flagship project has already led to Chinese investment in major port facilities near the canal, stoking fears in Washington that Beijing could eventually seek strategic leverage over the waterway.
The agreement does not allow the United States to create its own permanent bases on the isthmus, which would be immensely unpopular with Panamanians and illegal.
Historical sensitivities remain a key factor in Panama’s cautious approach. The memory of the US-controlled Canal Zone, which fueled decades of resentment before the 1977 Torrijos-Carter Treaties set the stage for Panama’s eventual takeover, still looms large in national politics. Any perception of a US military overreach could trigger public backlash, complicating the current government’s balancing act between Washington and Beijing.
However, agreement grants the US broad authority to deploy an unspecified number of personnel to outposts, some of which Washington constructed when it occupied the canal zone decades ago. Since returning to office in January, Trump has often asserted that China wields too much authority over the canal, which carries around 40% of US container traffic and 5% of global trade.
Recent data from the Panama Canal Authority shows that Chinese commercial vessels are among the top users of the waterway, further underscoring the economic stakes. The Trump administration has framed its push for greater military access as a necessary step to safeguard US interests, but critics argue that the move risks militarizing a primarily economic corridor and could provoke a response from Beijing.
His administration has vowed to “take back” control of the strategic waterway that the US funded, built and controlled until 1999.
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