In brief
Despite U.S. claims that government vessels can now navigate the Panama Canal without fees, Panama has clarified that there have been no changes to toll arrangements, maintaining its control over this vital international trade route.
The Panama Canal Authority (ACP) stated it is "empowered to set tolls and other fees for transiting the canal" and has "not made any adjustments to them." This comes in response to remarks made by U.S. Secretary of State Marco Rubio, who urged Panama to address what he perceives as excessive Chinese influence over this strategic waterway. Rubio's statements were echoed during his visit to Panama, where he met with President José Raúl Mulino and canal administrator Ricaurte Vásquez Morales.In a statement, Rubio emphasized that Panama must take significant steps to counteract Chinese presence or face potential U.S. actions to uphold its treaty rights. U.S. vessels represent a considerable share of canal traffic, with 52% of transits linked to U.S. ports projected for 2024. Annually, the canal services about 14,000 ships, providing a crucial route that circumvents the lengthy journey around South America.The history of the Panama Canal dates back to its construction by the U.S. in the early 20th century, culminating in a handover treaty signed by President Jimmy Carter in 1977, which has since sparked debate among U.S. officials, including former President Donald Trump. Trump has expressed intentions to reclaim control of the canal, branding the original treaty a significant mistake and alleging undue Chinese involvement.In light of these tensions, President Mulino has firmly asserted national sovereignty over the canal, dismissing Trump's allegations as unfounded while also reaffirming Panama's decision to withdraw from China's Belt and Road Initiative. The ACP has pledged to enhance collaboration with the U.S. Navy to ensure priority for American vessels, reflecting an ongoing dialogue between the nations.
