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US and Panama Formalize Security Pact for Canal Amid Rising Tensions with China

The agreement grants US warships priority and toll-free canal passage while reaffirming Panamanian sovereignty, though diplomatic ambiguities persist.

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 13, 2025. (AP Photo/Matias Delacroix)
US Secretary of Defense Pete Hegseth, right, and Panama Canal Authority Administrator Ricaurte Vasquez, second from right, cross a bridge during a tour of the Panama Canal's Miraflores Locks in Panama City on Tuesday.
A gas cargo ship sails through the Miraflores Locks on the Panama Canal in Panama City, on April 8, 2025.
Trump and Pete Hegseth confirmed a bold U.S. military move in Panama to counter China’s growing grip.

Overview

  • The United States and Panama have signed agreements granting US warships 'first and free' passage through the Panama Canal under a cost-neutral model.
  • The pact reaffirms Panama's sovereignty over the canal, though discrepancies between English and Spanish versions of the statements have raised questions.
  • The agreements include provisions for joint military exercises, cybersecurity collaboration, and rotational troop deployments at former US bases under Panamanian control.
  • Panama has firmly rejected permanent US military bases despite US suggestions to revive such installations.
  • The partnership is part of a broader US effort to counter China's influence in the region, with Trump administration officials emphasizing the canal's strategic importance.