Panama Canal denies U.S. claim of free transit for government vessels

The Panama Canal Authority has denied a statement from the U.S. Department of State that suggested U.S. government vessels would be allowed to transit the canal without fees.

“In response to a publication released by the United States Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, informs that it has not made any adjustments to them,” the authority stated in a release posted Wednesday evening.

“With utmost responsibility, the Panama Canal Authority, as it has indicated, is prepared to establish a dialogue with the relevant U.S. officials regarding the transit of warships from that country,” the statement added.

Earlier on Wednesday, the U.S. Department of State issued a statement claiming that the Government of Panama had agreed to “no longer charge fees for U.S. government vessels to transit the Panama Canal,” adding that the measure would save the U.S. millions of dollars annually.

Recent tensions between the United States and Panama have escalated following President Donald Trump’s remarks about the Panama Canal.

In December, Trump claimed that the canal was “falling into the wrong hands,” alleging increased Chinese influence over its operations. He criticized the tolls imposed on U.S. vessels as “exorbitant” and suggested that the U.S. might consider reclaiming control of the canal.

In response, Panamanian President José Raúl Mulino dismissed the claims, stating that the canal is “inalienable patrimony” and not subject to negotiation.

Following a visit by Secretary of State Marco Rubio, President Mulino announced that Panama would not renew a 2017 infrastructure funding agreement with China and proposed technical talks to address U.S. concerns. Despite these developments, Trump has continued to threaten seizing control of the canal if significant changes are not made.