‘FIRST AND FREE’: US and Panama lock in deals to deter China
United States Reasserts Strategic and Economic Dominance Through Panama Canal Agreements
The United States has taken decisive steps to secure its strategic and economic interests in the Western Hemisphere, finalizing two major agreements with Panama that strengthen American control over critical global trade infrastructure and blunt growing Chinese influence in the region.
The Panama Canal remains one of the most valuable corridors for U.S. economic and military operations, with 75% of its traffic either bound for or departing from American ports. Recognizing the canal's critical role, the United States negotiated "first and free" transit rights for U.S. military vessels. Under the new framework, American warships and auxiliary vessels will move to the front of the line without delay or costly transit fees — a significant advantage that preserves operational readiness while reducing expenses for the U.S. Treasury.
In addition to securing priority access through the canal, the U.S. also reached an agreement to revive operations at Fort Sherman, a former U.S. Army base near the canal. This move will allow rotational deployments of American forces, reinforcing U.S. presence in one of the world’s most strategically important locations. Together, these agreements not only enhance military mobility but also solidify America's role as the primary guarantor of stability in the Western Hemisphere.
Panama’s leadership, rejecting Chinese encroachment through the Belt and Road Initiative, has aligned itself with the United States in a clear rebuke of Beijing’s tactics. Recent audits revealed significant fraud and corruption tied to Chinese-controlled ports, prompting Panama to put those facilities up for sale. U.S.-aligned entities such as BlackRock are positioned to assume control, further severing Chinese influence over this critical trade corridor.
This shift in Panama represents a broader course correction. While previous U.S. administrations allowed Chinese influence to spread throughout Central and South America unchecked, the current policy reverses that trend. By asserting both military and economic leadership, the United States is restoring the balance of power in its own hemisphere, countering China's strategy of indebting and surveilling vulnerable nations through predatory infrastructure projects.
The new agreements also fit into a larger strategy of rebuilding American military strength and industrial capacity. President Trump’s administration has focused on restoring deterrence by investing in defense, strengthening alliances, and demonstrating a clear willingness to protect American interests against foreign encroachment. Military recruitment numbers have surged in response to these efforts, ensuring that the U.S. armed forces remain well-manned and prepared for emerging threats.
The Panama agreements are not merely about economic gain or logistical convenience; they are a clear demonstration that the United States intends to defend its strategic interests, maintain freedom of navigation, and support allies who choose partnership with America over exploitation by adversaries.
In an era of rising global competition, the message is unmistakable: the United States is reasserting its leadership — economically, militarily, and strategically — with a renewed commitment to ensuring that key infrastructure critical to American security remains firmly under friendly control.
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