Panama denies US toll exemption for government ships, calls for talks

The Panama Canal Authority denied the claim made by the US State Department on February 6, which stated that US government vessels would be exempt from tolls when passing through the canal.

In a statement, the Panama Canal Authority clarified that “no changes have been made to the rules of payment for the use of the Panama Canal”, Caliber.Az reports referring to international media sources.

However, the Authority also expressed its willingness to engage in dialogue with the US regarding the passage of US warships, noting, “We are ready to enter into a dialogue with the US side.”

Earlier, the US State Department posted on social media, saying, “US government vessels will now be able to pass through the Panama Canal without being charged a fee, which will save the US government millions of dollars a year.” The announcement suggested that this move would significantly reduce costs for the US government.

On the same day, Panamanian President José Raúl Mulino and US Secretary of Defense Pete Hegseth held discussions, during which both sides agreed to expand security cooperation. According to the US Department of Defense, “They agreed that the US and Panama have a strong relationship and share many security interests, including the defence of the Panama Canal.” The agreement underscores the mutual security concerns between the two nations regarding the strategic waterway.

President Mulino also revealed that Panama would withdraw from China’s Belt and Road Initiative (BRI) concerning the Panama Canal. He stated, “I have made an important decision and I am informing you of it. My government will not renew the 2017 memorandum of understanding on the One Belt, One Road initiative. We will explore the possibility of completing the project before the deadline.” This announcement came after a meeting with US Secretary of State Marco Rubio, who had expressed dissatisfaction with China’s growing influence over the Panama Canal. Rubio made it clear that the current situation was “unacceptable,” warning that without immediate changes, the US would be forced to take action to “protect its rights.”

Mulino, however, emphasized the positive nature of the dialogue with Washington, saying, “There is no doubt that the canal is under the administration of Panama and this status will remain unchanged.”

This shift in Panama’s stance comes amid renewed attention from the Trump administration, which had previously accused Panama of charging excessive fees for the use of the canal. President Trump had warned, “We will, without a doubt, demand that the Panama Canal be returned in full” if the tolls were not reversed.

By Tamilla Hasanova