U.S. Returns to Panama to Counter China

In a move that marks a strategic return of Washington to the geopolitical heart of Latin America, the United States and Panama signed a security cooperation agreement on April 9th, allowing the temporary presence of U.S. troops at facilities near the Panama Canal. The initiative, led by the Trump administration, aims to contain the growing influence of China in a region that has historically been vital to American interests.

The agreement, initially set for a three-year term, includes the use of former military installations such as Fort Sherman and the Rodman Naval Base, without establishing permanent bases or compromising Panamanian sovereignty. However, it grants the U.S. military priority access and significant operational capacity in strategic areas around the canal — a move analysts see as a practical, if not formal, return of American military influence in the region.

This initiative comes amid increasing concern in Washington over China’s expanding economic and political reach in Latin America. In recent years, Chinese state-owned companies have secured key infrastructure projects in Panama, including control of ports and canal-adjacent facilities. In response, the Department of Defense, under Secretary Pete Hegseth, warned of the risks of potential Chinese interference in the canal’s neutrality and operations. “The United States and Panama will take back control of the canal from Chinese influence,” Hegseth stated when announcing the agreement.

One of the most significant developments in this new alliance is Panama’s decision to withdraw from China’s Belt and Road Initiative, which it had joined in 2017. The move is widely seen as a signal that Panama is realigning with U.S. security and trade interests amid growing suspicion over Beijing’s strategic ambitions.

However, the agreement has sparked internal tensions in Panama. Opposition leaders have described the move as a “camouflaged invasion,” accusing President José Raúl Mulino’s government of caving to Washington’s pressure without transparent public consultation. Civil society groups have taken to the streets, and local media outlets are questioning the legality of the deal.

From the White House’s perspective, this agreement marks a significant victory for President Donald Trump’s foreign policy, which has repeatedly emphasized the need to contain China — not only in Asia but throughout the Western Hemisphere. The restoration of a military presence near the canal — a key artery of global commerce — is viewed as a reaffirmation of America’s commitment to hemispheric security and the defense of its strategic interests.

As the world closely watches the impact of this new chapter in canal geopolitics, the Trump administration reinforces a clear message: the United States is back in Latin America, determined to protect its interests, its allies, and its historical role as a guardian of international order.