Panama Denies Adjusting Canal Tariffs for US Vessels

By Staff, Agencies

The Panama Canal Authority denied Wednesday that it would allow US government vessels to transit the interoceanic waterway for free, as the US State Department announced earlier.

In a statement, the agency said, "The Panama Canal Authority, which is empowered to set tolls and other fees for transiting the canal, reports that it has not made any adjustments to them."

On Wednesday, the United States announced that, after significant pressure from President Donald Trump, its government ships would be permitted to pass through the Panama Canal without charge.

In a post on X, the State Department said that the "US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year."

This marked the first public disclosure of commitments previously hinted at by US Secretary of State Marco Rubio, who alleged that Panama had made concessions during their discussions on Sunday. He argued that it was unfair for the United States to be in a position to defend the vital waterway and also to be charged for its use.

Trump had refused to rule out force to seize the canal since winning the November US election, through which 40 percent of the US container traffic passes.

Trump and Rubio have raised alarms about Chinese investments, particularly in ports at both ends of the canal, cautioning that Beijing might restrict access to the waterway in a crisis. However, Panama has firmly denied Trump’s persistent assertions that China is involved in operating the canal.

However, Panama has taken steps to address US concerns. Following his discussions with Rubio, President Jose Raul Mulino announced that Panama would not renew its membership in the Belt and Road Initiative, China’s flagship infrastructure development program.

On Monday, Rubio told reporters that his talks with Mulino were "respectful" and that the visit was "going to achieve potentially good things that assuage concerns we have." However, Trump argued that he was not satisfied, although he acknowledged that Panama had "agreed to certain things."

The United States and Panama are scheduled to hold new talks on Friday to discuss the canal.