Panama denies US claims over free canal passages
Panama has denied making any changes to allow U.S. government vessels to transit the Panama Canal for free, contradicting claims from the White House that such an agreement had been reached.
The U.S. State Department had announced on social media platform X that its government ships could now pass through the canal without charge, a move it said would save the U.S. government millions of dollars annually. However, the Panama Canal Authority (ACP) swiftly refuted this claim, stating that it retains the power to set transit tolls and had not made any adjustments.
The controversy comes amid heightened tensions between the U.S. andPanama over control of the 51-mile (82km) canal, which serves as a critical link between the Atlantic and Pacific Oceans and is key to global trade.
U.S. President Donald Trump has repeatedly expressed a desire to retake control of the canal, arguing that China has too much influence over its operations. During a visit to Latin America this week, Secretary of StateMarco Rubio urged Panama to make “immediate changes” to limit China’s influenceand control over the waterway.
Rubio also met with Panama’s President José Raúl Mulino and the canal’s administrator, Ricaurte Vásquez Morales, during his visit. The ACP later stated that while it remains committed to working with the U.S. Navy to optimize transit priority for American vessels, it has not agreed to waive fees.
Panama’s government has strongly rejected Trump’s assertions, with President Mulino insisting that the canal is and will remain under Panama’s full control. He also dismissed allegations that China is interfering in the canal’s administration, stating, There is no presence of any nation in the world that interferes with our administration.
In response to growing geopolitical tensions, Mulino recently announced that Panama would withdraw from China’s Belt and Road Initiative, a global infrastructure-building program that the U.S. has long viewed as a strategic challenge.
The U.S. remains a major user of the Panama Canal, with 52% of transits in 2024 involving ships with American ports of origin or destination, according to canal authorities. Every year, up to 14,000 ships use the waterway to avoid the longer and costlier journey around the southern tip of South America.
The dispute has reignited debates over U.S. control of the canal, which was originally built by the United States in the early 20th century. After decades of protests, President Jimmy Carter signed a treaty in 1977 to gradually transfer control to Panama, a decision Trump has repeatedly called “a big mistake.” While diplomatic discussions between the U.S. and Panama continue, tensions over sovereignty, trade, and geopolitical influence remain at the heart of the debate over the future of the Panama Canal.
