Under the 1977 treaty, the US returned the canal to Panama with a clause that the waterway remain neutral to all users
The US and Panama are caught in a canal drama.
On Thursday, Panamanian President Jose Raul Mulino denied the US’s claims this week that Panama will allow US government ships to transit the canal for free.
Mulino’s statement comes a day after the US State Department announced via a post on X that the US government vessels “can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year.”
President Mulino rejected the statement as false. The Panama Canal Authority (PCA) stated it had “not made any adjustments” to fees but was open to discussions with US officials. Later, Secretary of State Marco Rubio said that he expects the fees to be removed.
The controversy follows Rubio’s recent visit to Panama, during which he conveyed President Donald Trump’s concerns about China’s growing influence over the canal and discussed a waiver for US Navy ships.
During his campaign, Trump promised to take back control of the canal.
Under the 1977 treaty with Panama, the US returned the canal with a clause that the waterway remain neutral to all users.