Panama pledges to abandon Silk Road after Secretary Hegseth's visit with President Mulino

Following a visit to the Panama Canal and a meeting with President José Raúl Mulino at the Palacio de las Garzas, U.S. Defense Secretary Pete Hegseth and Panamanian officials issued a joint statement in which Panama pledged to withdraw from the "Silk Road" initiative and scale back China's presence in the country.

"Secretary Hegseth warmly welcomed President Mulino's commitment to make Panama the first country in our hemisphere to abandon the Belt and Road Initiative, and to reduce China's problematic presence in other areas. In addition, Secretary Hegseth recognized Panama's leadership and inalienable sovereignty over the Panama Canal and its adjacent areas," the Panamanian government wrote in a joint statement.

"Also, Secretary Hegseth congratulated President Mulino on Panama's efforts to reduce illegal immigration and the border closure in the Darien," the Panamanian government added.

According to the joint statement, the governments of Panama and the United States also agreed to strengthen bilateral security cooperation through measures such as increased coordination in the Panama Canal, enhanced military and intelligence collaboration, joint exercises, and the development of mechanisms to compensate tolls in line with existing legal frameworks.

They also agreed to revitalize the High Level Security Dialogue, sign memoranda of understanding to enhance professional security training, resume the PANAMAX exercise in 2026, and leverage the expertise of the U.S. Department of Defense to strengthen strategic planning, cybersecurity and Panama's maritime security.

In addition to a meeting with Panama's president, Hegseth also met with Panama Canal Authority Administrator Ricaurte Vasquez at the canal.

Prior to the meeting, the Defense Secretary pledged that the United States would collaborate with the Panamanian government to diminish China’s influence over the Panama Canal.

"The United States of America will not allow communist China or any other country to threaten the canal's operation or integrity," Hegseth told reporters. "To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades."

"Together we will take back the Panama Canal from China's influence," he added.

The Pentagon chief’s visit to Panama comes just months after a war of words between former President Donald Trump and Panamanian President José Raúl Mulino over control of the Panama Canal, which was officially handed over to Panama in 1999 under the Torrijos-Carter Treaties signed in 1977.