Panama Denies U.S. Claims Over Free Canal Passages

Listen to this article Panama City: Panama has firmly denied U.S. claims that it has changed its policies to allow...
Panama Canal claims

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Panama City: Panama has firmly denied U.S. claims that it has changed its policies to allow government vessels from the United States to transit the Panama Canal for free. This follows a statement from the White House that suggested such an agreement had been reached.

U.S. Government Claims

The U.S. State Department announced on social media platform X that U.S. government vessels can now transit the Panama Canal without incurring toll fees. This change, according to the statement, would save the U.S. government millions of dollars each year. However, Panama quickly responded to these claims.

Panama Canal Authority’s Response

The Panama Canal Authority (ACP) stated that it holds the authority to set tolls and other fees for vessels transiting the canal. The ACP emphasized that it has not made any adjustments to the existing tolls or fees. This assertion highlights Panama’s control over the canal and its policies regarding tolls.

Trump’s Interest in the Canal

Former U.S. President Donald Trump has consistently expressed a desire to regain control of the Panama Canal. The canal is a crucial waterway for global trade, connecting the Atlantic and Pacific Oceans across Central America. Trump has referred to the U.S. relinquishing control as a mistake.

Secretary of State’s Demands

During a recent visit to Latin America, Secretary of State Marco Rubio demanded that Panama make immediate changes regarding what he termed China’s “influence and control” over the canal. Rubio warned that if Panama did not act, the U.S. would take necessary measures to protect its rights under a treaty between the two nations.

Meeting with Panamanian Officials

While in Panama, Rubio met with President José Raúl Mulino and the canal’s administrator, Ricaurte Vásquez Morales. After the meeting, the ACP expressed its willingness to work with the U.S. Navy to improve transit priority for U.S. vessels through the canal. The ACP reiterated its commitment to maintaining dialogue with Washington.

Importance of the Canal for U.S. Trade

U.S. vessels account for a significant portion of the traffic in the Panama Canal. In 2024, over 52% of the canal’s transits involved ports of origin or destination in the United States. Each year, approximately 14,000 ships use the canal to avoid the lengthy and costly journey around South America.

Rejection of Trump’s Claims

President Mulino firmly rejected Trump’s assertions about China’s influence over the canal. He stated that the key trade route is under Panama’s control and will remain so. Mulino also denied any foreign interference in Panama’s administration.

Conclusion

The Panama Canal was built by the U.S. in the early 20th century. However, after years of protests, President Jimmy Carter signed a treaty in 1977 to gradually hand back control of the canal to Panama. Despite the historical context and ongoing tensions, the ACP is determined to manage the canal independently, ensuring its sovereignty over this vital waterway.

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