Panama Asserts Sovereignty Amid US Military Exercises, No Permanent Forces

UPDATE: Panama’s Foreign Minister, Javier Martínez-Acha, has confirmed that the country has not ceded sovereignty to the United States amid ongoing military exercises. In an urgent interview with Euronews, he stated that these operations are temporary and no foreign armed forces will be stationed permanently in Panama.

The military exercises, which began recently, follow US President Donald Trump’s alarming insinuations regarding control over the strategically vital Panama Canal. This vital passage facilitates approximately 6% of the world’s maritime trade each year. In response to Trump’s threats, a memorandum has been signed to allow US forces to collaborate with Panamanian police for training purposes.

“These exercises are focused on preparing for asymmetric threats and joint action against organized crime and drug trafficking,” Martínez-Acha emphasized. He assured that “there will be no permanent presence of foreign forces” in Panama, aiming to quell rising fears of a potential US takeover.

Tensions between Panama and the US escalated following accusations from Trump that the nation was surrendering control to China. However, Martínez-Acha asserts that relations have improved significantly. “Cooperation is based on respect for Panama’s integrity and sovereignty,” he stated.

In a parallel development, Martínez-Acha is currently in Brussels to participate in the European Union-Central America Association Council. During discussions, he defended Panama against the label of a tax haven, emphasizing the country’s commitment to transparency and tax cooperation. Despite being recently removed from the European Parliament’s blacklist for weak illicit money flow controls, Panama remains on the list of non-cooperative tax states alongside countries like Russia and Trinidad and Tobago.

Martínez-Acha outlined ongoing efforts to reform Panama’s tax system to ensure that multinational companies operating in Panama contribute appropriately. “We are considering reforms to enhance tax cooperation and transparency,” he stated, acknowledging that work remains to align with international standards.

As developments unfold, all eyes are on the implications of US military activities in Panama and the ongoing negotiations in Europe, which could significantly impact the region’s geopolitical landscape. Stay tuned for more updates as this story continues to develop.