Andrew Sanders and Ryan C. Berg
Introduction
Since his election in November 2024, President Donald Trump has staked out strong positions on the importance of the Western Hemisphere to the United States’ national security interests. A secure, prosperous, and free Western Hemisphere underpins U.S. geopolitical and economic success. Panama is the most strategically significant geography in the Western Hemisphere. With 40 percent of U.S. container traffic passing through the Panama Canal, it rightfully drew President Trump’s attention. Trump has highlighted concerns about the status quo regarding the disposition of the canal, its operation, and People’s Republic of China (PRC)–owned ports dominating the approaches. This commentary will not relitigate the merits of the 1977 Carter-Torrijos treaty, sovereignty, or transit rates but rather highlight the strategic importance of Panama, legitimate concerns over Beijing-owned ports, and the need for sustained diplomatic engagement and U.S. private sector investment.
Since 1903, Panama has been one of the United States’ closest allies in the hemisphere. The Trump administration should build on this partnership. President José Raúl Mulino’s administration offers an opportunity for the United States to reinvigorate this critical strategic relationship. Mulino’s declared alignment with U.S. priorities, such as migration and anti-corruption, bodes well for the bilateral relationship and U.S. leadership in the Americas. This alignment on security issues should be accompanied by policies that build joint economic prosperity for the United States and Panama.
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