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.

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.