Panama Claims U.S. Recognized Canal Sovereignty, Pentagon Statement Doesn't Say So

At a press conference following a meeting with U.S. Secretary of Defense Pete Hegseth in Panama City, Panama's Minister for Public Security, Frank Abrego, said the U.S. government had "acknowledged the sovereignty of Panama over the Panama Canal."

A Spanish-language joint statement later echoed that claim, stating Hegseth had "recognized the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas."

The English version of the joint statement released by the U.S. Department of Defense, however, made no mention of such sovereignty. emphasizing security cooperation and reiterating U.S. support for Panama's withdrawal from China's Belt and Road Initiative.

When asked directly whether the United States recognizes Panamanian sovereignty over the canal, Hegseth avoided a clear answer:

"We certainly understand that the Panama Canal is in Panama, and protecting Panamanian sovereignty from malign influence is important"

President Donald Trump has repeatedly criticized the 1977 treaties under which the United States transferred control of the canal to Panama in 1999. He has suggested that China's commercial activity in ports near the canal constitutes a threat, calling for U.S. re-engagement. He also celebrated a March announcement that U.S.-based BlackRock would take over Hong Kong-based Hutchison's concession at two Panamanian ports, though the deal was later paused pending a Chinese antitrust review.

The visit by Hegseth—marking the first by a U.S. Defense Secretary to Panama in decades—resulted in a series of new agreements between the two nations which included increased joint military training, commitments to expedited passage of U.S. and Panamanian warships, and efforts to develop a mechanism for U.S. compensation for tolls under the canal's Neutrality Treaty framework.

The Pentagon statement also mentions "advancing arrangements between the United States and the Panama Canal Authority (ACP) toward the continued safe, secure, and neutral operation of the Panama Canal, including through the recent signing of a Cyber Cooperation Arrangement between U.S. Southern Command and the ACP to identify areas for enhanced bilateral cyber cooperation."

Hegseth also sparked controversy during his visit after suggesting the possibility of reestablishing a U.S. military presence in the country, a proposal that was swiftly rejected by local officials.