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Panama and US lock in new security pact for Canal as China tensions simmer

Panama and US lock in new security pact for Canal as China tensions simmer

Fox News
Thursday, April 10, 2025 5:06 AM GMT

Panama and the U.S. signed a new security pact on the canal, boosting defense ties.

The deal "reaffirms respect for, and the recognition of, Panamanian sovereignty over the interoceanic waterway," the Canal Authority stated. It also upholds both nations’ commitment to the Neutrality Treaty and the legal framework that governs canal operations, including Panama’s Constitution, the treaty itself, and the Canal’s Organic Law. Jasmine is a writer at Fox News Digital and a military spouse based in New Orleans. Stories can be sent to jasmine.baehr@fox.com

But the declaration goes beyond words. It lays out plans for a cost-sharing model to cover services provided to U.S. warships and auxiliary vessels, with the goal of keeping it "cost-neutral." 

"Efforts will be made [to] develop a mechanism which will allow compensation for services provided to warships and auxiliary vessels, seeking a cost-neutral basis," the statement reads. "This mechanism will be evaluated jointly with the Ministry of Security of Panama."

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