The Panama Canal Authority denied the U.S. State Department’s claim that U.S. government vessels could cross the canal without fees, pushing back against Washington’s assertion. The authority, an autonomous body under Panama’s government, stated it had not altered its fee policies.
Earlier, the U.S. State Department claimed Panama had agreed to waive fees for U.S. government ships, potentially saving millions. However, the canal authority emphasized its willingness to discuss wartime vessel transits but maintained its current policies.
Tensions have risen as former President Donald Trump accused Panama of overcharging and suggested reclaiming the canal if fee exemptions were not honored. He also alleged that Panama had ceded control of the canal to China, a claim both countries deny.
Panamanian President Jose Raul Mulino recently met U.S. Secretary of State Marco Rubio, pledging to withdraw from China’s Belt and Road Initiative. However, Mulino has dismissed Trump’s threats, reaffirming Panama’s sovereignty over the canal.
The U.S. built and managed the canal for decades before signing agreements in 1977 to transfer control. After a period of joint administration, the canal was fully handed over to Panama in 1999.
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