Panama has denied reports that U.S. government vessels would be allowed to transit the Panama Canal for free, calling Washington’s "false claims" unacceptable.
"I completely reject the information that surfaced yesterday," Panamanian President Jose Raul Mulino said in a press conference on February 6, referring to a U.S. State Department social media post that suggested American government ships could travel through the canal without charge.
President Mulino expressed “total surprise” at the U.S. State Department’s statement and said he had asked the U.S. ambassador to Panama for clarification. He criticized Washington’s actions as "unacceptable" and condemned what he called “bilateral relations built on lies.”
The Panama Canal Authority previously stated that "no changes have been made" regarding tolls for U.S. government vessels, adding that it remains open to discussions with Washington.
The U.S. State Department has not yet commented on the issue.
A Vital Global Trade Route
Stretching 82 kilometers, the Panama Canal is a crucial waterway linking the Pacific and Atlantic Oceans, significantly reducing travel distances between the two regions and eliminating the need for ships to navigate around the southern tip of South America.
Approximately 5% of global maritime trade passes through the Panama Canal each year, making it a strategic economic and military asset.
The United States originally built and controlled the Panama Canal, managing the surrounding territory for decades. However, in 1999, the U.S. fully transferred control of the canal to Panama after years of joint administration.
The canal remains an essential route for U.S. commercial and military shipping, with 40% of U.S. container traffic transiting through its waters.
Trump Threatens to Reclaim Control of the Canal
In his January 20 inauguration speech, President Donald Trump threatened to take back control of the Panama Canal. He did not rule out the possibility of using military force, sparking criticism from both U.S. allies and rivals in Latin America.
On February 1, U.S. Secretary of State Marco Rubio visited Panama and met with President Mulino. Rubio warned that China’s growing influence over the canal posed a threat to regional security and violated the U.S.-Panama treaty governing the canal’s operations.
Panama has firmly denied Trump’s allegations that China has operational control over the waterway. However, in an effort to ease U.S. concerns, President Mulino announced that Panama would withdraw from China’s Belt and Road Initiative, Beijing’s global infrastructure development program.
Trump and Mulino are scheduled to hold a phone call on February 7 to discuss the future of the Panama Canal.
(Sources: ABC News, Reuters)
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