Panama has refuted allegations that it has modified regulations to permit US government vessels to pass through the Panama Canal without charge, countering assertions made by the White House regarding an agreement on the matter.
The State Department announced via a statement on X that government vessels are now permitted to transit the Panama Canal without incurring fees, a move expected to save the US government millions of dollars annually.
The Panama Canal Authority (ACP) addressed the remarks by stating it is “empowered to set tolls and other fees for transiting the canal.” It emphasized that it has “not made any adjustments to them.”
US President Donald Trump has consistently expressed his intention to regain control of the waterway, a crucial artery for global trade.
The Panama Canal, spanning 51 miles (82 km), traverses the Central American nation, serving as the primary conduit between the Atlantic and Pacific oceans.
During his recent visit to Latin American nations, Secretary of State Marco Rubio called for Panama to implement “immediate changes” regarding what he describes as China’s “influence and control” over the canal.
The United States’ leading diplomat emphasized that Panama must take action, or the US will implement necessary measures to safeguard its rights as outlined in the treaty between the two nations.
In a recent visit to Panama, Rubio engaged in discussions with President José Raúl Mulino and Ricaurte Vásquez Morales, the administrator of the Panama Canal.
The ACP announced following his visit that it had expressed its intention to collaborate with the US Navy to enhance transit priority for its vessels navigating through the canal.
A separate statement released on Wednesday reaffirmed this commitment to dialogue with Washington.
US vessels constitute a notable share of the traffic navigating through the canal. According to the canal authorities, in 2024, 52% of transits through the waterway involved ports of origin or destination in the United States.
Approximately 14,000 vessels navigate the canal each year, seeking to bypass the lengthy and expensive journey around the southernmost point of South America.
During his inaugural address, President Trump asserted his intention to “take back” the canal, claiming that China was in control and accusing Panama of having “broken” its commitment to neutrality.
Mulino dismissed the proposal, asserting that the crucial trade route “is and will remain” under the nation’s control.
He dismissed Trump’s claims regarding China’s influence, asserting that there is “no presence of any nation in the world that interferes with our administration.”
The United States constructed the canal in the early 20th century. However, following years of opposition, President Jimmy Carter ratified a treaty with Panama in 1977 that initiated the gradual transfer of control over the waterway. This decision has since been criticized by former President Trump, who labeled it “a big mistake.”
