Low-key exercise reflects Panama's priorities

This year's exercises saw a greater emphasis on virtual modelling than in previous years, with most of the participating US naval vessels doing so from bases in Virginia and Florida. There was also a reduction in the number of countries taking part for the first time since Panamax was launched in 2003.

Panamax expanded rapidly after its inaugural year, when the United States, Panama and Chile were the only participants. By 2009 there were 20 countries taking part, collectively contributing 7,000 troops, more than 30 vessels and a dozen aircraft. The expansion was reflected in a widened scope, from an early focus on defending the canal zone against hostile states and terrorists to a broader range of security, interdiction and emergency response scenarios.

Under the guidance of the US Department of Defense's Southern Command, Panamax was used to expound the principles of networked operations and inter-operability in the Caribbean and Latin America at a time when these mantras were driving Washington's conversations with its NATO allies.

However, neither the UK and the Netherlands, the main non-US participants in Panamax, played an active role this year, a decision that appears to have been based in part on defence spending constraints. This prompted one local commentator to portray Panamax 2010 as a victim of the global economic crisis, implying Panama was a relatively low priority for newly cash-strapped military powers. However, scaling down the exercises reflects a broader range of factors, chief among which is the absence of any compelling security threats to the canal.