U.S. and Panama in talks over priority access to canal for U.S. Navy

The United States and Panama are currently in discussions to reach an agreement that would grant U.S. Navy vessels free and prioritized access to the Panama Canal, officials from both nations confirmed on Wednesday.

U.S. Defense Secretary Pete Hegseth, during a visit to Panama, highlighted the strategic importance of the canal and said the U.S. is determined to secure it against what he described as “China’s malign influence.”

Panama’s Minister of the Canal, José Ramón Icaza, clarified that the country cannot legally grant special passage rights to any single nation.

However, he noted that the two governments are exploring a framework involving “compensation for services.”

The discussions come as the Trump administration continues to voice concerns over what it perceives as Beijing’s expanding footprint in the region—claims that Panama has publicly rejected.

Former President Donald Trump has repeatedly argued that the Panama Canal should return to U.S. control.

In a joint press conference with Panama’s Minister of Public Security, Frank Ábrego, Hegseth reaffirmed Washington’s commitment to protecting the canal’s sovereignty and security.

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He also expressed support for increasing the U.S. troop presence in Panama to work alongside local forces.

“We certainly understand that the Panama Canal is in Panama,” Hegseth said when asked whether the U.S. recognizes Panamanian sovereignty.

“Protecting Panamanian sovereignty from malign influence is important, which is why, when President Trump says we’re taking back the Panama Canal from Chinese influence, that involves partnership with the U.S. and Panama.”

Both nations also agreed to strengthen military cooperation as part of the broader strategic partnership.

The Panama Canal, constructed by the United States in the early 20th century, was officially handed over to Panama in 1999, ending nearly a century of American control.