International
Panama Accuses US of ‘Lies’ Over Canal Fees
- Panama’s President Mulino rejects U.S. claim of toll-free canal access, calling it “intolerable lies.”
- U.S. Secretary of State Marco Rubio backtracks but criticizes canal fees as “absurd.”
- Panama exits China’s Belt and Road Initiative amid rising U.S. pressure on canal control.
Panama’s President José Raúl Mulino has accused the United States of spreading “lies and falsehoods” after the U.S. State Department incorrectly claimed that American government vessels were no longer required to pay fees to transit the Panama Canal.
U.S. Secretary of State Marco Rubio later walked back the claim but criticized the charges as “absurd,” arguing that a treaty obligates the U.S. to protect the canal if it comes under attack. Meanwhile, President Donald Trump has repeatedly expressed his desire to regain control of the strategic waterway, refusing to rule out military action. He is scheduled to speak with Mulino on Friday.
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The 51-mile (82km) Panama Canal connects the Atlantic and Pacific oceans, and all vessels—regardless of origin—must pay tolls based on their size and type. However, U.S. ships are given priority passage.
On Wednesday, the State Department posted on X that “U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year.”
Mulino quickly denounced the statement, calling it an unacceptable misrepresentation of Panama’s policies. “I reject this method of managing bilateral relations on the basis of lies and falsehoods,” he said, adding that he had instructed Panama’s ambassador in Washington to take firm action against the claim.
He clarified that U.S. government vessels, including navy ships, typically pay around “$6-7 million a year” in tolls, dismissing the notion that such fees were significantly impacting the American economy.
The Panama Canal Authority (ACP) also issued a statement affirming that no changes had been made to toll policies but signaled willingness to engage in dialogue.
Following a meeting between Rubio and Mulino, Panama announced its decision not to renew its membership in China’s Belt and Road Initiative (BRI), Beijing’s massive global infrastructure program. While the U.S. welcomed this move as a “great step forward,” Panama denied that the decision was influenced by Washington.
Trump has previously voiced concerns that China could use its influence to restrict U.S. access to the canal in a geopolitical crisis—claims that both Panama and China have denied. On Wednesday, China’s Foreign Affairs spokesperson Lin Jian praised the “fruitful results” of China-Panama relations and urged Panama to “resist external interference.”
Rubio met with Panama Canal administrator Ricaurte Vásquez Morales on Sunday, reiterating U.S. concerns over what he called China’s “influence and control” over the waterway. His remarks echoed Trump’s inauguration speech, in which the president claimed the canal was being operated by China and vowed to “take it back.”
Mulino firmly rejected these allegations, insisting that the Panama Canal “is and will remain” under Panamanian sovereignty.
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The canal was originally built by the United States in the early 20th century but was gradually transferred to Panama after President Jimmy Carter signed a treaty in 1977. Trump has repeatedly called the handover “a big mistake” since returning to office.
Rubio’s statement addressing Mulino’s accusations of U.S. misinformation came during the final stop of his Central American tour, which focused on regional issues like migration and drug trafficking.
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