Panama’s Ministry of Public Security (Minseg) has reactivated the Inter-Agency Microwave Network project, a strategic initiative to modernize the communications of the nation’s security forces. The project is receiving support from the United States with an $8 million investment to install new towers in four provinces, with the goal of strengthening the security institutions’ control over their own telecommunications systems.
Initially launched in 2017 for the National Border Service (SENAFRONT) and expanded to include the National Air and Naval Service (SENAN) and the National Police (PNP), the project involves replacing existing telecommunications equipment at 13 locations, including towers from Chinese company Huawei.
The move reflects a growing global concern over espionage, supply chain risks, and the control of critical infrastructure, and mirrors the caution shown by other countries toward Chinese suppliers.
“Once the project is completed, in approximately two years, Panama’s security institutions will have the capacity to control and manage their own telecommunications systems, strengthening their security,” the U.S. Embassy in Panama said in a statement.
For Víctor Ruiz, founder of the SILIKN cybersecurity center in Mexico, “this decision reflects a strategic alignment with the United States and the need for each nation to maintain control over its critical infrastructure and systems,” he told Diálogo. In January, Panama withdrew from China’s Belt and Road Initiative (BRI).
According to Ruiz, U.S. support will allow Panama to “operate with greater security and performance, avoiding dependence on external suppliers, especially China, whose transparency in data management always generates a lot of uncertainty.”
Risks associated with Chinese infrastructure
Huawei has been the subject of international scrutiny for risks related to national security involving espionage, surveillance, and state interference, as well as cybersecurity risks like data transfer and lack of transparency, stemming from its tie to the Chinese Communist Party (CCP). These concerns have led to bans and restrictions on Huawei’s involvement in 5G networks and other critical infrastructure globally.
In Latin America, Costa Rica barred companies that are not signatories to the Budapest Convention on Cybercrime from participating in 5G bidding processes, effectively excluding all Chinese technology companies, including Huawei. In February, Guatemala canceled a contract with the company due to information security risks and foreign influence, Guatemalan daily La Hora reported.
In Cuba, Huawei and ZTE personnel were seen entering suspected Chinese spy facilities, The Wall Street Journal reported in 2023. According to think tank Center for Strategic and International Studies (CSIS), Huawei provided Cuban authorities with mechanisms to limit or cut off the internet during protests. In Uganda and Zambia, technicians from the Chinese company supported intelligence services in monitoring opponents, CSIS said.
Huawei opened a regional headquarters in Panama in 2011 and a distribution center in 2013. In 2024, it announced plans to establish its first Regional Cybersecurity and Transparency Center for Latin America.
“The United States has practices, standards, and certifications that it can share with Panama to strengthen the country’s systems and overall performance. It already did so with Costa Rica after several cyberattacks, with positive results,” Ruiz said.
Bilateral cooperation on security and cyber defense
In February, the Panama Canal Authority and U.S. Southern Command (SOUTHCOM) signed a cybersecurity cooperation agreement to strengthen digital protection and ensure operational continuity in the event of attacks. The agreement provides for training, information sharing, and technical assistance, complementing previous commitments with U.S. agencies to increase the Canal’s resilience.
In April, Panama and the United signed a memorandum of understanding expanding their partnership for the security of the Panama Canal. The MOU will pave the way for increased information sharing, cyber cooperation, joint exercises, bilateral security dialogues, and improvements to the Canal’s infrastructure.
These agreements are part of a broader strategic alliance. With the new telecommunications infrastructure, the United States and Panama are reaffirming their commitment to combating drug, arms, and human trafficking, Minseg said in a statement. The project seeks to strengthen shared security between the two countries and consolidate a strategic alliance in defense and cybersecurity, according to the U.S. Embassy in Panama.
“The replacement of Huawei technology and the United States’ experience in the fight against terrorism and drug trafficking, together with methodologies refined over many years, can be transferred directly thanks to a closer technological relationship,” Ruiz said. “This will allow Panama to access state-of-the-art defense capabilities.”
The cases of Panama and Costa Rica demonstrate a change in approach to managing security risks: actively avoiding dependence on technologies with possible links to the CCP and the associated risks of surveillance or espionage. “This decision could motivate other Central American countries to review their technological relationships with Chinese companies,” Ruiz concluded.
