Panama Denies US Claim On Canal Fees For Government Ships

 Panama has officially denied a claim made by the US State Department on Wednesday that the country had agreed to waive fees for US government ships transiting the Panama Canal.

The Panama Canal Authority, which is responsible for setting tolls and other fees for canal transit, issued a statement clarifying that no adjustments had been made to the fees. The authority emphasized its willingness to engage in a dialogue with the US but stood by its existing policies.

This statement contradicted the US State Department’s earlier announcement, which stated, “US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year.” The US government had previously paid approximately $25.4 million over the past 26 years for the transit of warships and submarines, amounting to less than one million dollars annually, according to Panama's embassy in Cuba.

The dispute comes amid growing diplomatic tensions between the US and Panama, particularly in relation to China’s involvement near the Panama Canal. President Donald Trump recently reiterated his commitment to “take back” the Panama Canal, suggesting that the US might take "powerful" actions in response to what he described as China's influence over the waterway. Trump’s comments reignited debate over Panama’s sovereignty and the canal’s strategic importance.

Despite these tensions, the diplomatic situation appeared to ease briefly following a meeting between US Secretary of State Marco Rubio and Panama’s President Raúl Mulino. While Mulino assured Rubio that Panama’s sovereignty over the canal was not negotiable, he also addressed US concerns over China’s presence, stating that Panama would not renew its participation in China's Belt and Road initiative and that the existing deal with Beijing could be ended early.

The Panama Canal was handed back to Panama under a 1977 treaty, with provisions that allow the US to intervene militarily if the waterway is disrupted by internal conflict or foreign intervention. Since 2000, the canal has been operated by the Panama Canal Authority, an entity independent of US control, though the US continues to hold interests in the region.

The canal remains one of the world’s most important shipping routes, with more cargo passing through it than ever before. While Panama Ports, a subsidiary of the Hong Kong-based conglomerate CK Hutchison Holdings, operates terminals on both sides of the canal, Hutchison does not control access to the waterway itself.