News:US, Panama sign canal security pact to counter China as base proposal rejected:Read more :

The United States and Panama have signed a new defence and security pact to boost cooperation around the Panama Canal — a move US Defence Secretary Pete Hegseth called vital to countering China’s growing influence. However, Panama swiftly rejected Hegseth’s separate proposal to revive US military bases in the country

The joint declaration, signed by Panama’s Minister for Canal Affairs and Hegseth, reaffirms Panamanian sovereignty over the interoceanic waterway while laying the groundwork for enhanced military coordination. “Efforts will be made [to] develop a mechanism which will allow compensation for services provided to warships and auxiliary vessels, seeking a cost-neutral basis,” read a statement from the Panama Canal Authority, posted Wednesday night on X.

According to Hegseth, the deal is a step toward a broader framework that would guarantee US Navy vessels “first and free” passage through the canal. The Defence Secretary confirmed that a memorandum of understanding has already been signed and that a final agreement is expected soon. The Canal Authority described the declaration as “a first step” toward a more detailed cost-sharing model.

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The joint declaration, signed by Panama’s Minister for Canal Affairs and Hegseth, reaffirms Panamanian sovereignty over the interoceanic waterway while laying the groundwork for enhanced military coordination. “Efforts will be made [to] develop a mechanism which will allow compensation for services provided to warships and auxiliary vessels, seeking a cost-neutral basis,” read a statement from the Panama Canal Authority, posted Wednesday night on X.

According to Hegseth, the deal is a step toward a broader framework that would guarantee US Navy vessels “first and free” passage through the canal. The Defence Secretary confirmed that a memorandum of understanding has already been signed and that a final agreement is expected soon. The Canal Authority described the declaration as “a first step” toward a more detailed cost-sharing model.

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The agreement comes amid a renewed push by Washington to counter Chinese economic and logistical influence in Latin America. Hegseth warned that Beijing’s presence in the Western Hemisphere “is already too big, and still growing.” The USNS Comfort, a Navy hospital ship, is also being deployed to the region in what officials call a demonstration of commitment to regional stability and partnership.

Yet, while the US moves forward with military collaboration in engineering, security, and cybersecurity, its ambitions for a more direct physical presence hit a wall.