The rhythmic hum of massive ships traversing one of the world’s most vital maritime passages echoes a story of enduring partnership between two nations. For nearly half a century, the Panama Canal, an engineering marvel connecting oceans, has been a central point of diplomacy and shared responsibility between the United States and Panama. This relationship, solidified by the Torrijos-Carter Treaties signed on September 7, 1977, culminated in Panama’s full control of the Canal on December 31, 1999, marking a historic shift that continues to define a strong and positive bond.
Today, the operations of the Panama Canal are managed with exceptional efficiency by the Panama Canal Authority (ACP). This iconic waterway, connecting the Atlantic and Pacific oceans, serves as a crucial artery for international trade, facilitating the movement of goods and fostering economic prosperity across the globe. Panama’s diligent stewardship ensures the Canal remains open, neutral, and accessible to vessels of all nations.
A legacy of sovereignty, security, and defense
The enduring success of the Canal is not only a testament to Panamanian expertise but also to the continued, positive collaboration with the United States, which maintains a vital interest in the Canal’s security and uninterrupted operation.
This shared commitment translates into active defense cooperation, with both nations participating in joint exercises and information sharing to safeguard the Canal against any potential threats. These efforts underscore a mutual understanding that the Canal’s security is paramount for global commerce and regional security.
“The Torrijos-Carter Treaties marked a milestone in the relationship between Panama and the United States by establishing a framework for cooperation based on mutual respect and Panamanian sovereignty,” Commander Luis Antonio De Gracia, director general of Panama’s National Air and Naval Service (SENAN), told Diálogo. “The transition allowed for the full transfer of the Canal and consolidated Panama as a strategic partner and key player in the Western Hemisphere security.”
As such, ongoing coordination has been established with key Panamanian forces such as SENAN and the National Border Service (SENAFRONT), Cmdr. De Gracia said. For example, Panama and the United States jointly take part in U.S. Southern Command- (SOUTHCOM) sponsored exercises, including PANAMAX and UNITAS, focusing on canal protection, IUU fishing, and regional maritime security.
These cooperative security efforts are critical for maintaining the uninterrupted flow of global trade through the waterway. The Panama Canal handles between five and six percent of global maritime trade. Following its expansion in 2016, it increased its capacity to receive larger vessels, reinforcing its global economic importance.
Beyond traditional threats, the rising challenge of cyberattacks has led to new layers of cooperation. Recently, the ACP and SOUTHCOM signed a groundbreaking cybersecurity arrangement. This accord aims to enhance the Canal’s digital defenses, share threat intelligence, and build capacity to protect its critical operational technology from malicious cyber activity, underscoring the comprehensive nature of modern security collaboration.
“The Canal has a key geostrategic position for global trade. By law, SENAN is responsible for its protection and defense against emerging and hybrid threats such as drug trafficking, terrorism, and cyberattacks, in accordance with its special regime,” said Cmdr. De Gracia. “To this end, we coordinate with other state security agencies and strengthen bilateral cooperation with the United States, especially through SOUTHCOM.”
“This cooperation has been key to addressing these threats in a comprehensive manner. Through initiatives such as the Regional Aeronaval Operations Center [CROAN], SENAN coordinates efforts to combat maritime drug trafficking, counter IUU fishing, and support search and rescue operations,” Cmdr. De Gracia added. “SOUTHCOM provides support in information sharing, logistics, and training.”
Through this bilateral cooperation, SENAN receives technical assistance in air and naval maintenance, infrastructure, and tactical equipment from the United States. Ongoing training strengthens the professionalization of personnel, improving deployment and response to threats, Cmdr. De Gracia explained. Specialized training has increased institutional autonomy in surveillance, logistics, and security. In addition, since the 1990s, U.S. special forces teams have been training Panamanian units as part of this cooperation. These actions improve regional interoperability and ensure the continuity of international trade.
Technical cooperation on infrastructure
Beyond defense, the partnership extends to crucial support for the Canal’s long-term viability. The United States has historically provided technical assistance, and when needed, financial support to ensure the ongoing maintenance, repair, and modernization of the Canal’s vast infrastructure. The collaboration between Panama and the U.S. Army Corps of Engineers (USACE) is a strategic cooperation mechanism for canal sustainability and security. For more than two decades, USACE has provided support to ACP in planning, risk analysis, and climate adaptation.
This enduring collaboration was further formalized and strengthened with the signing of a memorandum of understanding in April 2025, which addresses ongoing technical support for water sustainability. According to the U.S. Embassy in Panama, this agreement is vital for reinforcing Panama’s institutional capacity to manage water resources, which are essential for the continuous operation of the Canal especially in the face of climate variability.
“The support and cooperation received from the U.S. Army Corps of Engineers has been crucial for the development of infrastructure projects, as well as for the modernization and improvement of our workshops,” said Commander De Gracia. “This collaboration has had a positive impact on the training and education of our personnel.”
USACE brings unparalleled expertise to this partnership with extensive experience in maintaining more than 700 dams, 21,000 kilometers of waterways, and 240 locks within the United States, in addition to providing assistance in more than 100 countries globally. This deep knowledge has been particularly relevant in addressing challenges posed by phenomena such as El Niño, reduced rainfall, and the increasing demands of maritime traffic.
The scope of collaboration also extends beyond the Canal’s immediate operational needs. Since May 2025, USACE has been actively collaborating in the city of Colón on drainage and sewerage works aimed at mitigating persistent flooding. These actions directly support key urban areas vital for regional logistics and demonstrate the comprehensive nature of U.S.-Panama cooperation.
For Federico Rabino, an expert in international relations and geopolitics and director of the Fernando de la Mora Institute in Paraguay, “the U.S. presence in Panama is becoming increasingly important,” he told Diálogo, alluding to a renewed bilateral dynamic spanning infrastructure, security, and technical assistance.
As Panama and the United States mark another anniversary of the Torrijos-Carter Treaties, the Panama Canal stands as a powerful symbol of a mature and positive relationship between two sovereign nations. It represents not just an engineering marvel, but a living testament to how diplomacy and cooperation can lead to shared prosperity, mutual respect, and a brighter future for the world.
