PANAMA’S President Jose Raul Mulino has refused calls that he renegotiate an agreement with the United States giving US troops access to his country’s facilities.

Protesters have accused the president of selling out Panama’s sovereignty.

On Tuesday, thousands of people marched in the capital Panama City in the largest demonstration yet against an agreement signed during last month’s visit by US Defence Secretary Pete Hegseth.

The deal followed suggestions by US President Donald Trump that Washington should seize control of the Panama Canal.

The US embassy in Panama issued a statement on Wednesday claiming that the agreement did not allow the establishment of military bases in the country. 

“Panama’s sovereignty is not at stake, it’s not handed over, it’s not given,” Mr Mulino said during his weekly press conference on Thursday. He insisted the agreement would not lead to the US opening bases in Panama.

Later that day, new US ambassador Kevin Marino Carbera said the agreement was “going to strengthen our co-operation against drug trafficking and protect the [Panama] Canal and we know that’s the responsibility of both countries according to the [canal] treaty.”

Panama’s government claims that the locations to which US troops and contractors will have access will always remain under Panamanian control and that it can terminate the agreement with six months’ notice.