State Department claim that US government vessels can transit canal without charge fees rejected by Panama, with Canal Authority saying it has not made any changes
Panama has denied a US claim that it had agreed to waive fees for US government ships using the canal, a claim made as US President Donald Trump continues to press his case to “take back” the canal.
“US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year,” the State Department said on X on Wednesday, alongside an image of a naval vessel entering the canal's locks.
Rebuffing the claim, the Panama Canal Authority, which sets tolls and other transit fees, said in an official statement on X that it "has not made any adjustments."
The authority added that it is prepared to "establish a dialogue with the US officials."
The US has paid a total of $25.4 million over the past 26 years for the passage of warships and submarines, averaging less than one million dollars per year, according to a statement from Panama's Embassy in Cuba, as reported by CNN.
- Panama to end deal with China
Panama became a key focus of the Trump administration after Trump accused the Central American nation of imposing excessively high fees for access to its trade route, one of the world's busiest.
In his Jan. 20 inauguration speech, Trump condemned the decision to hand over control of the canal, saying it was "foolishly given to the country of Panama." He said the U.S. had "spent more money than ever spent on a project before and lost 38,000 lives in the building of the Panama Canal."
The US was “treated very badly," he claimed, adding that "Panama's promise to us has been broken."
Under a 1977 treaty, control of the canal was transferred to Panama, granting the US the right to intervene militarily if its operations are threatened by internal unrest or foreign interference.
On Sunday, Trump reaffirmed his commitment to "take back" the canal, saying the US would take "powerful" action amid what he called China's growing influence.
He told reporters that “China is running the Panama Canal,” and claimed that Panama had “violated the agreement.”
On Tuesday, Secretary of State Marco Rubio, on his first overseas trip in his new role, met with Panama's President Raul Mulino.
While Mulino asserted that Panama's sovereignty over the canal was “not up for debate,” he acknowledged Washington's concerns about China's influence, CNN reported.
He announced that Panama would not renew its 2017 memorandum with China's Belt and Road Initiative, a global infrastructure strategy aimed at expanding Beijing's economic influence through large-scale projects, and suggested the deal could end early.
Mulino also expressed interest in strengthening ties with the US, stating that the visit “opens the door to build new relations” and expand American investments in Panama.
