US military asked to draw up options for increasing presence at Panama Canal
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March 13, 2025
The White House has instructed the U.S. military to develop options for expanding American troop presence in Panama, NBC news reported.
This follows President Donald Trump’s recent statement about “reclaiming” the Panama Canal.
U.S. Southern Command has prepared multiple strategic approaches ranging from enhanced military partnership with Panama to more assertive options, two officials told NBC, speaking on condition of anonymity due to the sensitive nature of the plans. The extent of any military action would depend largely on Panama’s willingness to increase cooperation with American forces.
Admiral Alvin Holsey, commander of U.S. Southern Command, presented draft strategies to Defense Secretary Pete Hegseth this week, with Hegseth expected to visit Panama next month, the officials confirmed.
The officials emphasised that an invasion scenario remains highly unlikely and would only be considered if diplomatic and partnership approaches fail to achieve the administration’s objectives.
“The primary aim is diminishing Chinese influence in the region, particularly regarding access to the canal,” one of the officials said, noting that the administration views Chinese presence near the strategic waterway with concern.
The strategic options under consideration include:
Ensuring safe passage of U.S. vessels through the canal
Securing existing Panamanian ports or developing new port facilities
Potentially involving the Army Corps of Engineers in canal lock operations
Establishing Army Jungle Schools reminiscent of training facilities that operated prior to 1999
Positioning forces regionally to secure the canal in case of broader conflict
Currently, more than 200 U.S. troops are stationed in Panama, including Special Forces units working with Panamanian authorities on security operations, though this number fluctuates with rotational deployments.
Both Panama and China have rejected assertions of foreign interference in canal operations. Panamanian President José Raúl Mulino has maintained that his government alone administers the canal, while Chinese officials have accused the United States of using “coercion” to pressure Panama regarding Chinese development projects.
During a visit to Panama last month, Secretary of State Marco Rubio told President Mulino that “the status quo is unacceptable” regarding China’s presence in the country. Shortly thereafter, Panama declined to renew a key infrastructure agreement with China.
The Panama Canal, constructed by the United States between 1904 and 1914, was transferred to Panamanian control following the 1977 Carter-Torrijos Treaties. The final handover occurred in 1999 after decades of Panamanian advocacy for sovereignty over the waterway.
The canal remains one of the world’s most critical maritime passages, with the majority of cargo either originating in or destined for the United States. Any disruption would force vessels to circumnavigate South America, substantially increasing shipping costs and transit times.
In his joint address to Congress last week, Trump referenced a business development that could affect canal operations: “Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal.”
This referred to investment company BlackRock’s participation in purchasing a 90% stake in Panama Ports Company, which operates facilities at both ends of the canal, from Hong Kong-based CK Hutchinson for $22.8 billion.