Overview

• Panama and the United States have finalized a three-year agreement permitting US military personnel to conduct training, exercises, and equipment storage in Panama-controlled facilities near the canal.
• The deal explicitly excludes the establishment of permanent US military bases, with all operations subject to Panamanian oversight and approval.
• President Trump has framed the agreement as a strategic move to counter China's growing influence over the Panama Canal, a critical global trade route.
• Panama emphasized its sovereignty throughout negotiations, rejecting US proposals for permanent bases and territorial concessions.
• The agreement comes as the US navigates domestic challenges, including a Supreme Court mandate to address a wrongful deportation and financial market instability tied to tariff policies.