Panama city solar container defense

What is US policy on Panama?

U.S. policy is to shrink the Chinese commercial footprint around critical nodes and to bind Panama more tightly through defense cooperation and investment signals. China’s interest is access and influence at minimal political cost, not operational control of the locks.

What should the US do with Panama?

The United States should prioritize institutional ties with the new government, incentivize U.S. investment in strategic infrastructure projects, and strengthen cooperation with Panama’s security forces. A stronger relationship with Panama directly impacts U.S. strategic priorities.

Will Panama protect US security?

In practice, Panama is signaling it will privilege U.S. security concerns and investment while resisting any framing that implies external control.

How can the Panama Canal improve national security?

These include enhancing national security by maintaining unfettered maritime flow through the Panama Canal, providing a transparent alternative to the PRC investment, especially around the canal, and securing the homeland by reducing the flow of illegal migrants and drugs.

Does America have a strategic interest in Panama?

Robust diplomacy, economic engagement, and security partnerships will guarantee America’s strategic interests in Panama and the broader Western Hemisphere. Andrew Sanders is a principal at Coati Consulting, strategic advisor at the Inter-American Defense College, and former director for Brazil and the Southern Cone at the National Security Council.

Will there be a permanent troop presence in Panama?

Importantly, the secretary of defense stressed that any troop presence in Panama would occur in a rotational capacity only. The idea of a permanent troop presence returning to the country not even three decades after the handover of the canal remains highly controversial in Panama.