Panama refutes assertions by the White House that it agreed to grant free passage to US government vessels through the Panama Canal. The State Department disclosed that their ships could now navigate the canal without charge, saving millions annually.
The Panama Canal Authority highlighted its authority to establish tolls and fees and clarified that no adjustments had been made. US President Donald Trump's interest in regaining control of this vital trade route has been vocalized.
The Panama Canal, spanning 51 miles (82km) within Panama, serves as a crucial passage between the Atlantic and Pacific Oceans. Secretary of State Marco Rubio, visiting Latin American countries, urged Panama to address what he perceives as undue Chinese influence over the canal.
Rubio met with Panama's President José Raúl Mulino and Ricaurte Vásquez Morales, the canal's administrator, emphasizing the need for immediate action to safeguard US treaty rights. The ACP expressed its commitment to collaborating with the US Navy to enhance transit priority.
US vessels represent a substantial portion of canal traffic, with over half of transits in 2024 involving US origin or destination ports. Panama hosts around 14,000 ship transits yearly, offering a crucial shortcut around South America.
Despite President Trump's claim of intending to "reclaim" the canal citing Chinese involvement, President Mulino asserted Panama's sovereignty over the waterway. Dismissing accusations of Chinese influence, Mulino affirmed that Panama manages the canal autonomously.
Trump's stance has been met with rebuttals from Mulino, emphasizing Panama's control over the canal and declining further engagement with China's infrastructure initiatives. Following the treaty signed by President Carter in 1977, Panama has progressively regained control of the canal, a decision criticized by Trump as a "mistake."