Written by Staff Writers on
 March 15, 2025

Hegseth launches review of options for US access to Panama Canal

A memo approved by the Trump administration could soon lead to the deployment of U.S. military forces to seize control of the Panama Canal, a vital trade route linking the Atlantic and Pacific Oceans.

This situation has arisen after Panama chose not to renew a critical infrastructure agreement with China, raising concerns with the Trump administration about China's growing influence in the region, as Breitbart reports.

The latest "Interim National Defense Strategic Guidance" outlines these measures, drafted to replace the previous 2022 National Defense Strategy, and presents options considered by Defense Secretary Pete Hegseth to ensure U.S. dominance over the canal corridor. The focus is to thwart any potential disruptions that could affect American economic and military interests, particularly in volatile scenarios involving China.

Proposed Involvement of U.S. Military Forces

At the heart of this strategic shift are recommendations by the U.S. Southern Command for potential military interventions. These include two pivotal actions: the guarantee of safe passage for American vessels and the potential restoration of full U.S. ownership of the canal. Secretary Hegseth will soon embark on a visit to Panama, supposedly next month, to finalize discussions and strategy implementation with Panamanian counterparts and U.S. forces stationed there.

The possibility of involving the U.S. military to oversee port operations and engaging the Army Corps of Engineers to manage the canal's locks has been deliberated as part of this strategic overview. Such moves are meant to solidify the United States' influence in the region, ensuring continuous and unfettered access to this strategic artery.

These measures reflect a paradigm shift towards reasserting control over an asset that was under American sway until the final handover to Panama in 1999. With approximately 200 U.S. troops already stationed on Panamanian soil, including special forces aiding local military initiatives, the groundwork for intensified U.S. presence appears set.

Strategic Economic Partnerships and Corporate Interests

President Donald Trump has highlighted a burgeoning American corporate interest in the region, mentioning recent moves by companies to acquire valuable maritime infrastructure. Specifically, a large U.S. entity, BlackRock, is reportedly in discussions to acquire a significant 90% stake in the Panama Ports Company. This deal, valued at $22.8 billion, marks a notable economic push from CK Hutchinson and reflects America's intent to counterbalance China’s former role and influence.

Trump has publicly stated, "A large American company announced they are buying both ports around the Panama Canal," underscoring the heightened focus on these vital installations. This corporate maneuver aligns with the broader U.S. goal of re-establishing economic dominance in proximity to the canal.

The administration's interest in solidifying control over the canal is part of a broader geopolitical strategy, aiming to weaken Chinese influence on global trade routes and prevent possible disruptions during American-Chinese conflicts. Trump's strategic plan places particular emphasis on maintaining Western Hemisphere stability and re-integrating robust military alliances.

Implications for Regional and Global Stability

This guidance stresses reinforcing U.S. borders, concentrating on relations within the Western Hemisphere, and addressing challenges posed by China. Notably, it reaffirms alliances with European partners, urging them to act as allies rather than dependents. Additionally, seeing continued military support to Israel and Gulf entities, along with cooperative action with Sunni Gulf countries, accentuates the expansive nature of the U.S. strategic vision under Trump.

The Panamanian government's decision to halt infrastructure collaboration with China emerged after diplomatic engagements led by U.S. Secretary of State Marco Rubio. Secretary Rubio emphasized the potential implications for Panamanian leadership, including Prime Minister José Raúl Mulino, should they continue engagement with China.

Aligning Global Strategies with National Interests

This delicate geopolitical situation, underscored by dense networks of commerce, power, and military presence, suggests significant recalibrations in the Central American theatre. The objectives seemingly resonate with U.S. intentions of securing strategic assets amid persistent global competition from peer nations like China. The unfolding developments at the Panama Canal herald the evident rivalry between the world’s two largest economies. Secretary Hegseth's forthcoming visit and strategic talks transport these discussions into actionable steps that could reshape international maritime logistics and security protocols.

Should the memo's recommendations translate into actionable policies, the Panama Canal might witness increased American operational oversight, potentially inclining global maritime balance back toward U.S. favoritism. However, the ramifications of such moves could invite diplomatic challenges or even escalate regional tensions where U.S. influence remains contested.

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