Panama City: The United States and Panama have signed a bilateral accord that permits the deployment of the US forces in access points to the Panama Canal and adjacent areas surrounding the strategic waterway. Having been signed during the visit of US Secretary of Defense Pete Hegseth to Panama, the agreement states that the US military, along with private military contractors operating in coordination with Washington, will be authorized to utilize designated sites, facilities, and areas earmarked for training and humanitarian operation.

According to Qatar News Agency, this includes access to the Panama Canal and its adjoining zones. However, the deal explicitly rules out the establishment of permanent US military bases on Panamanian soil, as per the text published by the Panamanian government. No American troops have been stationed in Panama since the conclusion of US control over the canal in 1999, marking a 25-year absence of formal military presence. Control of the Panama Canal was transferred from the United States to Panama in 1999, pursuant to a treaty signed in 1977 during the administration of former US President Jimmy Carter.

The administration of President Donald Trump repeatedly voiced apprehensions over China's increasing footprint and potential sway over this vital waterway, concerns that were unequivocally dismissed by both Panama and Beijing. In addition, over 40 percent of US maritime trade, valued at approximately USD270 billion annually, transits the Panama Canal, accounting for more than two-thirds of the daily vessel traffic through what is considered the second busiest maritime passageway in the world. Furthermore, more than 100 US naval warships navigate the canal annually.