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Panama Canal Authority denies free passage for US vessels as Donald Trump plans to regain control
- The Panama Canal Authority denied the US claim that fees for government vessels would be waived. They clarified on social media that no changes have been made to the tolls and are open to discussions with US officials about the transit of warships.
After the US announced Panama would waive fees for government vessels using the Panama Canal, the Panama Canal Authority clarified that they have ‘not made any adjustments to them’.
Taking to their official social media handle X, The Panama Canal Authority, “In response to a publication released by the United States Department of State, the Panama Canal Authority, which is authorised to set tolls and other fees for transiting the Canal, reports that it has not made any adjustments to them. The Panama Canal Authority, as it has indicated, is fully prepared to engage in dialogue with relevant United States officials regarding the transit of U.S. warships.”
This came after the US State Department announced that Panama has agreed to eliminate fees for US government vessels transiting the Panama Canal. It further said the decision will save the US government millions of dollars each year.
Sharing a post on X, the US State Department wrote, “US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year.” Earlier on February 1, US Secretary of State Marco Rubio arrived in Panama marking his first trip since holding the job as US top diplomat.
Trump threatens to take control of the Canal
Notably, after winning the US presidential elections last November, President Donald Trump had threatened to take control of the Canal accusing Panama of charging excessive rates on US ships passing through one of the busiest waterways in the world.
"Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous," Trump posted on his Truth Social platform in November. In his inauguration speech on Monday, January 26, Trump repeated his aspiration that the United States would take back the Panama canal, which is a key route for world shipping. He also repeated accusations against Panama of breaking promises it made for the final transfer of the strategic waterway in 1999 and of ceding its operation to China.
The Panamanian government has vehemently denied these allegations.
Panama's President Jose Raul Mulino said on X on Monday that Panama has administered the canal responsibly for world trade, including for the United States, and that it "is and will continue to be Panamanian".
The US largely built the canal in 1914 and administered territory surrounding the passage for decades. But Washington fully handed control of the canal to Panama in 1999 after a period of joint administration.
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Business NewsNewsUs NewsPanama Canal Authority denies free passage for US vessels as Donald Trump plans to regain control
First Published:6 Feb 2025, 01:07 PM IST
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