Panama Refutes US Allegations on Canal Fee Changes

Panama has officially rejected assertions made by the United States regarding free canal passage for U.S. government vessels, asserting that no changes to tolls have been made and that the Canal Authority retains full control over transit fees.

Panama has categorically denied recent U.S. claims that it has modified regulations to allow American government vessels to transit the Panama Canal without incurring fees. The U.S. State Department made the assertion via X, stating that the move would lead to significant savings for the U.S. government. However, the Panama Canal Authority (ACP) firmly stated it has not changed its toll structure and is fully authorized to determine the fees associated with transiting the canal.

This diplomatic tension arises amid ongoing discussions by U.S. officials concerning China's influence over the vital waterway. U.S. Secretary of State Marco Rubio, currently visiting Latin America, has urged Panama to take immediate measures to mitigate what he perceives as Chinese control over the canal, which is crucial for international trade.

During his visit, Rubio met with Panama's President José Raúl Mulino and the canal's administrator, Ricaurte Vásquez Morales, asserting that the U.S. needed to act to safeguard its interests relating to a treaty between the two nations. In response to these claims, the ACP expressed a willingness to collaborate with the U.S. Navy to prioritize the transit of American vessels but emphasized its commitment to maintaining control over the canal.

U.S. vessels constitute a major portion of the canal's traffic, with projections indicating that in 2024, over half of all transits will originate or conclude in the United States. Historically, the canal serves approximately 14,000 ships each year, providing a critical shortcut that bypasses the lengthy route around South America.

Former President Donald Trump had voiced intentions to reclaim control over the canal, expressing concerns about China's operations in the area and alleging that Panama had not upheld agreements regarding neutrality. President Mulino decisively countered this narrative, affirming that the Panama Canal is governed by Panama with no foreign interference.

Originally constructed by the United States in the early 1900s, the Panama Canal was subject to a treaty signed by President Jimmy Carter in 1977, which initiated its transfer back to Panamanian control—a move that Trump has controversially referred to as a significant error.