Overview

• US Defense Minister Pete Hegseth's proposal to station US troops near the Panama Canal was decisively rejected by the Panamanian government, citing sovereignty concerns.
• Discussions are ongoing to establish a mechanism allowing US military ships prioritized and cost-compensated passage through the canal, with Panama open to a compromise.
• Hegseth accused China of exerting influence over canal infrastructure for espionage purposes, a claim China denies, reaffirming its respect for Panama's sovereignty.
• President Trump has repeatedly threatened to reassert US control over the canal, framing it as a response to perceived Chinese dominance of the strategic waterway.
• The Panamanian government continues to resist measures perceived as undermining its autonomy, emphasizing its exclusive control over the canal.