Panama Rejects U.S. Military Bases Amid Canal Sovereignty Tensions

Panama’s President José Raúl Mulino has firmly declared that “foreign military bases are unacceptable” on Panamanian soil, reigniting debates over sovereignty and foreign influence in the Panama Canal.

His remarks follow the signing of a security memorandum between Panama and the United States, which allows U.S. forces to operate from three Panamanian-controlled facilities for joint training and security missions.

However, Mulino emphasized that the agreement explicitly rules out permanent U.S. bases or territorial concessions. The U.S.-Panama deal comes amid heightened geopolitical tensions, with Washington seeking to counter China’s growing influence in Latin America.

The Panama Canal, which facilitates 5% of global trade and handles 40% of U.S. container traffic, remains a strategic asset. Since returning to office, President Donald Trump has pushed for stronger U.S. control over the canal, citing concerns about Chinese investments in nearby infrastructure.

The memorandum permits rotational deployments of U.S. forces but keeps administrative authority under Panama’s jurisdiction. Despite these assurances, Panamanians remain wary of any perceived erosion of sovereignty.

Critics have pointed to inconsistencies in joint statements, with the English version omitting explicit recognition of Panama’s sovereignty over the canal—a glaring omission noted by Panamanian officials.

The canal generates $270 billion annually in trade and has been under Panama’s control since 1999. Mulino underscored its neutrality and vowed that it “will remain Panamanian.”

Meanwhile, U.S. officials have called for free passage for American warships. Some argue this demand challenges the Neutrality Treaty governing the canal.

This agreement highlights Panama’s delicate balancing act: maintaining sovereignty while navigating pressure from global powers vying for influence over one of the world’s most critical trade routes.

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