In an unfolding diplomatic situation, Panama's President José Raúl Mulino firmly rejected claims made by the U.S. State Department suggesting that U.S. warships would now be able to transit the Panama Canal without incurring fees. This declaration came as a surprise during his routine press conference in Panama City.
President Mulino made it clear that he neither possesses the power to modify the canal's fee structure nor the authority to exempt any entities from these charges. His remarks aimed to counter statements from the State Department, which had fueled international attention on the matter. He emphasized, “I completely reject that statement,” and highlighted his directions to Panama’s ambassador in Washington to challenge the claim.
According to the U.S. State Department, the supposed deal would reportedly save the United States government millions annually in transit fees. However, the Panama Canal Authority quickly issued its own statement negating any change in the established fee schedule.
The controversy prompted a reaction from U.S. Secretary of State Marco Rubio, who recently toured the critical trade waterway and met with Mulino and canal officials. Speaking from the Dominican Republic, Rubio acknowledged Panama's legal frameworks and procedures but stressed an obligation under treaty to protect the canal if threatened. “I find it absurd that we would have to pay fees to transit a zone that we are obligated to protect in a time of conflict,” he asserted.
This particular treaty, central to ongoing discussions, emphasizes the canal's neutrality—a principal condition when the U.S. transferred control to Panama back in 1999. Further asserting U.S. policy interests, Rubio conveyed President Donald Trump’s discontent with China's rising influence and potential treaty violations regarding neutrality.
The strategic relevance of the Panama Canal has historically underscored U.S. foreign and defense policy, which Rubio's dialogue starkly illustrated. Canal operations remain a point of interest amid international power dynamics, with the United States tracking military and commercial transits.
Administrators of the canal have not entered any formal agreement to grant preferential treatment, including the waiving of fees, but expressed openness to discussions about giving priority passage to U.S. warships under certain circumstances. However, Panama’s constitutional mandates are clear: fee waivers are not within presidential or governmental jurisdiction.
In the past, U.S. warships—encompassing a variety of naval vessels—crossed the canal close to a thousand times over two decades, constituting a mere 0.3% of traffic, according to the canal authority’s records. While this represents a small fraction of traffic, the collected fees contribute substantially to the canal's operational costs.
The charges for such transits are calculated based on displacement tonnage, a metric differing from commercial vessel fees. Mulino reiterated that altering these fees would necessitate constitutional amendments—a process that transcends ordinary diplomatic or administrative negotiations.
As talks are anticipated to continue, the international focus remains on how such key infrastructure will be managed amid evolving geopolitical interests. The forthcoming conversation between President Mulino and President Trump could further clarify these complexities.
