Topline
The Panama Canal Authority late Wednesday denied the State Department’s claim that it had agreed to a deal to allow U.S. vessels to pass through the canal without paying any toll or fees, amid threats by President Donald Trump of the U.S. retaking control of the critical waterway.
U.S. Secretary of State Marco Rubio (L) talks to Panama Canal Authority Administrator Ricaurte … [+]
Key Facts
In a post on X on Wednesday evening, the State Department announced the government of Panama has “agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal.”
The post also claimed this move would save the U.S. government “millions of dollars a year.”
A few hours later, the canal authority responded, saying it is “empowered to set tolls for vessels transiting the canal” and has “not made any adjustments to these fees.”
The canal authority added that it has indicated to the U.S. government that it is establishing “a dialogue with the pertinent officials” on the passage of U.S. warships through the waterway.
In a statement Tuesday, the canal authority mentioned Secretary of State Marco Rubio’s visit to the canal, his meeting with the agency’s Administrator Ricaurte Vasquez and their “willingness” for dialog.
The canal authority is a Panamanian government agency in charge of the operation of the waterway; it took over the responsibility from the Panama Canal Commission—a joint U.S.-Panama operation—in 1999.
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What Happened During Marco Rubio’s Visit To Panama?
Rubio traveled to Panama on Sunday as part of a larger diplomatic tour of several Latin American countries. The secretary of state met with the country’s President José Raúl Mulino and other officials, before visiting the Miraflores locks of the Panama Canal. According to the State Department, Rubio told Panamanian officials that Trump believes “the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal,” and a violation of a treaty of neutrality with regards to the canal. The secretary of state added the status quo was unacceptable and “absent immediate changes,” the U.S. would need to “take measures necessary to protect its rights under the Treaty.”
Crucial Quote
In an interview with Fox News earlier this week, Rubio said: “My hope ultimately is that we can get back to a point where that canal is what it was meant to be, which is a place for the United States and Panama working in partnership… and that no foreign power through their companies or any other means has the ability to use it against us in a time of conflict and impede travel through it, because it would be devastating.”
Chief Critic
During the Chinese Foreign Ministry’s daily press briefing on Wednesday, spokesperson Lin Jian said: “Recently, the US has made irresponsible remarks on the Panama Canal issue, and intentionally distorted, attacked and mischaracterized relevant cooperation. China firmly opposes it and made stern démarches to the US side.”
Key Background
In December, Trump lashed out at what he said was the “exorbitant prices and rates of passage” the Panama Canal authority was charging U.S. Naval and merchant vessels crossing the waterway. Trump said former President Jimmy Carter had “foolishly” ceded control of the canal to Panama and claimed that the Panamanian government was now allowing China to manage it. The president then said he would demand the canal be returned to the U.S. “in full, quickly and without question.” Since taking office last month, Trump has doubled down on his demand and has also refused to rule out using “military force or economic coercion” to take control of the strategic waterway. The Panamanian government has indicated it is open to discussion with the U.S. but the country’s president has rejected the allegation that China or any other country has any direct or indirect control of the canal. To further assuage the Trump administration’s concerns, the Panamanian president informed Rubio that his country would not renew a memorandum of understanding it had signed in 2017 to join China’s Belt Road Initiative—under which China made infrastructure investments in the Latin American country.
Further Reading
Trump Says US Should Take Ownership Of Greenland And Threatens Panama Canal Takeover (Forbes)
‘Gulf Of America’: Trump Says He’ll Rename Gulf Of Mexico (Forbes)
