Panama firmly denies agreeing to exempt U.S. government vessels from paying fees for transiting the Panama Canal. The response follows claims from the White House suggesting Panama made such a commitment.
The U.S. State Department, in a statement on X, announced that American government ships “can now pass through the Panama Canal without paying fees, saving the country millions annually.”
Rejecting this claim, the Panama Canal Authority (ACP) emphasized its authority to set tolls and fees for canal usage. It clarified, “No recent adjustments have been made regarding fee structures.”
President Donald Trump has frequently expressed a desire to reclaim control of the canal, which is crucial to global trade. Spanning 51 miles (82 km), it connects the Atlantic and Pacific oceans through Central America.
U.S. Secretary of State Marco Rubio, during his Latin America tour, called on Panama to address China’s “influence and control” over the waterway. Rubio warned that the U.S. would take action if Panama failed to comply with existing treaty obligations.
While visiting Panama, Rubio met with President José Raúl Mulino and the canal’s administrator, Ricaurte Vásquez Morales. Following the meetings, the ACP confirmed plans to collaborate with the U.S. Navy to optimize transit priority for American vessels.
Panama’s officials reaffirmed their commitment to maintaining ongoing dialogue with the U.S. The canal authority noted that U.S. vessels represented 52% of total canal traffic in 2024. The canal handles up to 14,000 ships annually, offering an alternative to navigating the long, costly route around South America.
Trump, in his inaugural speech, vowed to “take back” the canal, accusing China of managing it and blaming Panama for breaking its neutrality promise. President Mulino, however, strongly rejected these claims, affirming that the canal “is and will remain” under Panamanian control.
Mulino also dismissed Trump’s accusations regarding China’s involvement, insisting, “No nation, including China, interferes with our administration.” The U.S., which built the canal in the early 20th century, transferred control to Panama gradually under a treaty signed in 1977 by President Jimmy Carter. Trump described the treaty as “a major mistake.”