Tensions between the United States and Panama have escalated following conflicting statements regarding the transit fees for US government vessels through the Panama Canal. The Panama Canal Authority has firmly rejected the US State Department’s assertion that a deal was reached to allow these vessels to cross the canal without incurring fees, a move that the US claimed would save millions annually.
In a statement released on Wednesday, the Panama Canal Authority, which operates independently under the Panamanian government, clarified that no changes had been made to the tolls or rights for crossing the canal. This statement was a direct response to claims made by the US government earlier that day. The authority emphasized that it remains open to discussions with US officials concerning the transit of wartime vessels.
The controversy arose after US Secretary of State Marco Rubio’s recent visit to Panama, during which he hinted at potential concessions regarding transit fees. The State Department subsequently announced on social media that Panama had agreed to eliminate fees for US government vessels, prompting a swift denial from the canal authority.
Panama has become a focal point of contention for the Trump administration, which has accused the country of imposing excessive charges for the use of the canal, a critical waterway that connects the Pacific and Atlantic Oceans and handles a significant portion of US container traffic. President Trump has gone so far as to threaten the use of force to regain control of the canal, which the US originally operated until 1999 when it was handed back to Panama under treaties signed in the late 1970s.
During his inaugural address in January, Trump declared the US would be "taking back" the canal if a satisfactory agreement was not reached, stating that control would be returned "in full, and without question." His administration has also expressed concerns about Panama’s alleged ceding of control to China, a claim that both Panama and China have denied.
In light of these tensions, Panamanian President Jose Raul Mulino has taken steps to distance his country from Chinese influence by promising to withdraw from China’s Belt and Road Initiative and ordering an audit of Panama Ports Company, which is managed by a Hong Kong-based conglomerate.
Despite the escalating rhetoric from the US, Mulino has dismissed Trump’s threats to retake the canal, asserting Panama’s sovereignty over the strategic waterway. As the situation develops, both nations appear to be at a crossroads, with the potential for further diplomatic negotiations or increased tensions on the horizon.