Overview

• Panama has signed a bilateral agreement permitting U.S. military forces and private contractors to deploy near the Panama Canal for training, humanitarian efforts, and exercises.
• The agreement, which lasts three years and is renewable, explicitly prohibits the establishment of permanent U.S. military bases in the region.
• Panama's government emphasized its sovereignty over the canal, rejecting U.S. requests for territorial concessions and permanent bases.
• The deal reflects the Trump administration's push to counter Chinese influence in Latin America, with the Panama Canal seen as a key strategic asset.
• The agreement has sparked criticism within Panama, with opposition figures and activists labeling it a threat to national sovereignty and a reminder of past U.S. military interventions.