PANAMA CITY — The United States and Panama have signed a new agreement allowing U.S. military forces to deploy to Panamanian-controlled bases along the Panama Canal for training, joint exercises, and other activities approved by the Panamanian government, the Pentagon confirmed this week.

The Memorandum of Understanding (MOU), signed by U.S. Secretary of Defense Pete Hegseth during his visit to Panama, outlines a framework under which U.S. troops can operate in the country while reaffirming Panama’s full sovereignty and authority over its territory and military installations.

Under the agreement, the United States will recognize Panama’s control over all military bases, and any future deployments of U.S. forces will require explicit authorization from the Panamanian government.

While the deal allows for limited military cooperation, a separate proposal that would have reestablished permanent U.S. military bases in Panama was rejected by Panamanian officials. Government sources said the proposal was “unacceptable” and likely to face strong public opposition.

Polls in recent years show that while many Panamanians acknowledge the necessity of the 1989 U.S. invasion to remove military ruler Manuel Noriega, a majority also believe it caused widespread and unnecessary destruction. That legacy, officials say, continues to shape public attitudes toward any long-term U.S. military presence in the country.

The Panama Canal remains a strategic asset for global commerce and international security, and the new agreement reflects growing cooperation between the two countries amid regional concerns about transnational crime, trafficking, and foreign influence in Latin America.