Panama Canal rejects US government vessel’s request for free passage
The Panama Canal Authority says it is ready for dialogue with Washington over the passage of US warships.
The Panama Canal Authority has denied the US State Department’s claim that the two sides have reached an agreement to allow US government ships to pass through the canal toll-free, a claim that could escalate tensions after President Trump threatened to retake control of the waterway connecting the Pacific and Atlantic Oceans.
The canal authority, an independent agency overseen by the Panamanian government, said in a statement on Wednesday that it had not made any changes to the canal’s tolls or rights of way, adding that the statement was a direct response to US allegations.
“The Panama Canal Authority has the authority to set canal tolls and other charges, but the authority has reportedly not made any changes to those charges,” he said.
But it said it was still ready to hold talks with US authorities over the “transit of US warships.”
Panama has become a focus of the Trump administration as the president accuses the Central American country of overcharging for its trade corridor, one of the world’s busiest.
Earlier on Wednesday, the U.S. State Department said the Panamanian government had agreed to stop charging U.S. government ships for transit, a move that will save the country millions of dollars.
“U.S. government ships can now pass through the Panama Canal for free, saving the U.S. government millions of dollars each year,” the State Department said in a post on social media platform X.
This was the first public announcement of the implied commitment by U.S. Secretary of State Marco Rubio, who said the United States had won some concessions during a visit to Panama on Sunday.
Since winning the U.S. election in November last year, Trump has refused to rule out the use of force to take control of the canal, which carries 40% of U.S. container traffic.
In his inaugural address last January, Trump said the United States would “take back” the canal. The canal was begun by France in 1881 but completed by the United States in 1914. Washington returned control of the canal to Panama in 1999 under a treaty signed in 1977.
Trump has repeatedly said the canal would be returned to the United States “in full and without question” if a deal could not be reached.
Panama, meanwhile, has also been accused of ceding control of the canal to China, something both Panama and China deny.
During his visit to Panama, Rubio held talks with Panamanian President José Raul Molino, who subsequently pledged to withdraw from China’s Belt and Road Initiative.
Molino also ordered a review of Panama Ports, a subsidiary of Hong Kong’s Cheung Kong Hutchison Holdings that operates two major ports around the Panama Canal.
The company was awarded a concession in 1997 and had it extended for 25 years in 2021, despite growing concerns in Washington as China tightens its political control over Hong Kong. But Molino dismissed Trump’s threats to retake U.S. control of the canal.
