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Panama Rejects US Claims Regarding Free Canal Transit for Government Vessels

Panama clarifies its stance, denying recent US assertions about free passage through the canal.

Source: bbc.co.uk2 min read
Panama Rejects US Claims Regarding Free Canal Transit for Government Vessels
Image via bbc.co.uk

In brief

The Panama Canal Authority has firmly stated that it has not altered transit fees for US government vessels despite claims from the White House, reaffirming its autonomy over the canal's toll system.

Panama has officially dismissed allegations from the United States regarding changes that would permit US government vessels to traverse the Panama Canal without incurring fees. In a statement posted on social media, the US State Department claimed that it had reached an agreement with Panama allowing these vessels to transit “without charge,” potentially resulting in significant savings for the US government.In response, Panama Canal Authority (ACP) clarified its position, insisting that it retains the authority to set transit tolls and has not modified any fees related to the canal. The ACP emphasized that there have been no recent alterations to the existing toll structure.The issue has garnered significant political attention, particularly with remarks from US Secretary of State Marco Rubio during his visit to Latin America, where he pressed Panama to counteract what he described as increasing Chinese influence over the canal. Rubio warned that if Panama did not take immediate action, the US might feel compelled to enforce its rights under the long-standing treaties established between the two nations.Rubio's visit included discussions with Panamanian President José Raúl Mulino and Ricaurte Vásquez Morales, the canal's administrator. Following these meetings, the ACP reaffirmed its willingness to collaborate with the US Navy to enhance transit priorities for American vessels.Historically, the Panama Canal has served as a critical artery for global maritime trade, with US vessels constituting a substantial percentage of its traffic. Reports indicate that over half of the canal's transits in 2024 are linked to US ports, illustrating its significance in American commerce.The canal, a strategic link between the Atlantic and Pacific oceans, stretches 51 miles (82 km) across Panama. Following a protracted political process, the US relinquished control of the canal to Panama, which has maintained governance over it since the treaty signed between the two countries in 1977.Former President Trump has publicly expressed a desire to “take back” control of the canal, criticizing Panama’s commitments to China and labeling the original treaty a “big mistake.” However, President Mulino insists that the canal remains firmly under Panamanian control and refuted claims of foreign interference in its operations.

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