It means that the Panama Canal must be secure and open for the peaceful transit of vessels of all nations in times of both peace and war. This is intended to prevent it from becoming the target of armed conflict between nations.
“The neutrality of the Panama Canal is therefore a different kind of neutrality from that of nation states,” the Federal Council said. “Countries that sign the protocol… undertake to observe and respect the permanent neutrality of the Panama Canal. They also ensure that vessels of their registry comply with the rules of the treaty.”
The council said the accession does not give rise to any new rights or obligations for Switzerland.