In a rare public disagreement between the US and Panama, the Panama Canal Authority has denied claims made by the US State Department on Wednesday. The US Department had announced that the Panamanian government had agreed to exempt US government vessels from paying fees to transit the Panama Canal. This, they stated, would save the US government millions of dollars annually.
Key Takeaways
- ✅ Panama Says No Free Rides: The Panama Canal Authority denied the US State Department’s claim that US government ships can pass for free.
- ✅ Fees Stay the Same: Panama confirmed that it has not changed tolls for any vessel, including US military ships.
- ✅ Tensions with the US: This comes after Trump’s bold statement about “taking back” the canal due to concerns over China’s influence in Panama.
- ✅ Panama Stands Firm: President Raúl Mulino assured that Panama’s control over the canal is non-negotiable.
- ✅ Talks Are Open: While tolls remain, Panama is open to discussing US military ship transits with Washington.
💡 Why It Matters? The Panama Canal is a vital trade route, and this dispute could impact global shipping and politics.
However, the Panama Canal Authority swiftly responded, stating that it had not altered the toll structure for transiting vessels.
“The Panama Canal Authority, which has the exclusive responsibility to set tolls for the transit of vessels through the canal, clarifies that it has not made any adjustments to the tolls or fees,” the authority said in an official statement.
The statement added that Panama was open to establishing a dialogue with US officials on the matter.
The US State Department’s announcement came with a claim that exempting US government vessels from fees could result in substantial savings. Over the past 26 years, the US government has paid approximately $25.4 million for the transit of military vessels, a sum that translates to under $1 million annually.
This development occurs amid heightened tensions between the two nations. In recent statements, former US President Donald Trump reiterated his contentious stance on the Panama Canal, claiming that the US should “take back” the canal, which was returned to Panama under the 1977 Torrijos–Carter Treaties. Trump had also expressed concerns about China’s increasing presence in Panama, particularly its involvement in infrastructure projects linked to the Belt and Road Initiative.
In contrast, Panama’s President Raúl Mulino emphasized Panama’s sovereignty over the canal during talks with US Secretary of State Marco Rubio. Mulino made it clear that the canal’s control was non-negotiable, while also assuring that Panama would not renew its agreement with China regarding the Belt and Road Initiative.
While tensions over political and strategic control of the canal continue, the Panama Canal remains a crucial global trade route, handling more cargo than ever before, with 12,000 transits annually. The canal is managed by the Panama Canal Authority, which operates independently of direct government oversight but remains fully under Panama’s control since 1999.
The latest exchange has once again put the spotlight on the geopolitical significance of the Panama Canal, with the US and China both asserting influence in the region. While Panama stands firm in its control, it faces mounting international pressure regarding its relations with both superpowers.
As the debate over the canal’s future unfolds, the Panama Canal Authority has reiterated its willingness to engage in constructive dialogue with US officials, ensuring that the operation of the waterway remains transparent and fair to all nations using it.
Bottom Line
This ongoing diplomatic disagreement highlights the complex interplay of international relations, trade, and national sovereignty. As the US seeks to assert its influence in the region, Panama maintains its position on the canal’s autonomy. The situation remains fluid, with potential implications for global trade and military strategy in the years to come.
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