Hegseth is to travel to Panama for meetings following Trump's demands for the canal

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WASHINGTON (AP) — Defense Secretary Pete Hegseth will travel to Panama next week to meet with leaders of the Central American country following recent Trump administration allegations of Chinese interference in the operations of the critical Panama Canal shipping lane.

President Donald Trump has complained about the U.S. relinquishing control of the waterway to Panama more than 20 years ago and has threatened to retake it, arguing that the U.S. was being overcharged for using it. Panama’s government has denied Trump's assertion that China exerts influence over the canal.

Sean Parnell, chief Pentagon spokesman, said Friday that Hegseth will participate in the 2025 Central American Security Conference. He said Hegseth will take part in meetings that “will drive ongoing efforts to strengthen our partnerships with Panama and other Central American nations toward our shared vision for a peaceful and secure Western Hemisphere.”

He did not mention the canal, which was built by the U.S. in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. Washington turned control over to Panama on Dec. 31, 1999, under a treaty signed in 1977 by President Jimmy Carter. Trump has claimed that Carter “foolishly” gave the canal away.

After Trump's threats, a Hong Kong-based conglomerate has agreed to sell its controlling stake in a subsidiary that operates ports near the Panama Canal to a consortium including BlackRock Inc., effectively putting the ports under American control.

The deal will give the U.S. investment management company BlackRock Inc. control over 43 ports in 23 countries, including the ports of Balboa and Cristobal, located at either end of the Panama Canal. Other ports are in Mexico, the Netherlands, Egypt, Australia, Pakistan and elsewhere.

The transaction must be approved by Panama’s government, which has maintained that it has full control over the canal and that the Hong Kong-based group’s operation of the ports did not amount to Chinese control over the waterway.

Parnell said Hegseth also will stop at Eglin Air Force Base to visit service members and command leadership at the 7th Special Forces Group.