US and Panama Sign Framework Agreement on Military Transit
United States and Panama have signed a framework agreement providing priority passage through the Panama Canal for US military vessels and support ships, according to Pentagon chief Pete Hegseth after high-level talks between top leaders of both nations on canal operations. Hegseth announced the accord following high-level discussions between Hegseth and Panamanian Minister of Canal Affairs Pedro Alvarado - signalling a significant development in ongoing bilateral relationships regarding canal operations between both nations.
Panama made a major concession with this agreement, namely tariff structures for all vessels transiting its canal. Under its new framework, US military vessels will receive preferential treatment and exemption from standard transit fees; an indication of Washington's strategic importance on rapid military mobility through Panama.
Crisis Resolution and Diplomatic Normalization
Panamanian President Jose Raul Mulino recently declared that tension with the United States over the canal has eased following months of tension stemming from Trump administration rhetoric regarding possible reclamation of strategic waterway. A framework agreement seems to have resolved immediate diplomatic friction, with both nations moving toward cooperative arrangements on military operations.
This accord comes after the White House directed the Pentagon to prepare plans for expanding US military presence in Panama as part of broader strategic considerations. This accord facilitates such deployments by streamlining military vessel transit procedures through Panama's 44-nautimile canal, which handles approximately five percent of global maritime traffic.
Strategic Implications for Canal Operations
The Framework Agreement represents evolving geopolitical priorities in Central America and demonstrates Panama's willingness to accommodate US military interests in exchange for normalized relations. The arrangement protects Panamanian sovereignty over its canal while setting operational protocols that bolster American defense capabilities in the region.