Canal Controversy: Panama Rejects US Assertion of Toll-Free Access

• Panama denies U.S. claim of free canal transits, asserting no toll adjustments have been made.
• Secretary of State Marco Rubio urges Panama to counter alleged Chinese influence over the canal.
• President Trump reiterates calls to “take back” the canal, criticizing the 1977 treaty transfer.

Panama has refuted claims that it has altered its policies to allow U.S. government vessels to transit the Panama Canal free of charge, contradicting recent statements from the White House.

The U.S. State Department had announced on X that American government vessels could now pass through the canal without paying toll fees, saving the U.S. government millions annually. However, the Panama Canal Authority (ACP) responded by asserting its exclusive authority to set tolls and confirming that no adjustments had been made to existing fees.

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President Donald Trump has repeatedly expressed a desire for the U.S. to regain control of the canal, a crucial passage for global trade that connects the Atlantic and Pacific Oceans. The 51-mile (82km) waterway has been a focal point of geopolitical tensions, particularly concerning China’s growing influence in the region.

During a Latin America tour, U.S. Secretary of State Marco Rubio urged Panama to address what he described as Beijing’s “influence and control” over the canal. He warned that failure to act could prompt Washington to take steps to protect its interests under existing treaties. While meeting with Panamanian President José Raúl Mulino and canal administrator Ricaurte Vásquez Morales, Rubio emphasized the strategic importance of ensuring U.S. access to the waterway.

Following these discussions, the ACP confirmed its commitment to working with the U.S. Navy to optimize transit priority for American vessels but stopped short of agreeing to waive toll fees.

The U.S. remains the canal’s most significant user, with 52% of all transits in 2024 involving ports in the United States. The waterway facilitates the passage of up to 14,000 ships annually, offering a critical shortcut compared to the lengthy and costly route around South America.

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Trump has been vocal about his disapproval of the 1977 treaty signed by President Jimmy Carter, which led to the gradual transfer of the canal from U.S. to Panamanian control. In his inaugural speech, he vowed to “take back” the canal, alleging that China was influencing its operations and that Panama had failed to uphold its neutrality.

President Mulino firmly rejected these claims, stating that the Panama Canal remains under full national control and that no foreign power interferes in its administration.

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