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Panama has pushed back on US claims that American government vessels can transit the Panama Canal for free.
Some shit you should know before you read: Shortly after a meeting with Secretary of State Marco Rubio, the State Department claimed that US government vessels could now transit the Panama Canal without paying fees, a move it said would save the US millions of dollars annually. In a statement posted on social media platform X, the department claimed that the change had been agreed upon, sharing an image of a US naval vessel entering the canal. Bloomberg also reported, citing a US official, that Panama had promised free passage for American warships through the waterway. Additionally, the Panama Canal Authority was said to have agreed to “optimize transit priority” for US Navy ships, indicating discussions had taken place regarding adjustments to their passage through the canal.
What’s going on now: Despite the claims, Panamanian President José Raúl Mulino rejected the State Department’s statement, calling it an “intolerable” falsehood. He said, “I want to make it very clear to the country my absolute rejection of the statement from the State Department,” Mulino said at a press conference. He further condemned the assertion, stating, “[The State Department] are making an important and institutional statement from the entity that governs the foreign policy of the United States under the President of the United States based on a falsehood, and that is intolerable. Simply and plainly intolerable.” Mulino said that Panama’s constitution prohibits exemptions from canal tolls and denied that any such agreement had been reached.
Mulino also criticized the idea of conducting bilateral relations with the US “on the basis of lies and falsehoods” and directed Panamanian diplomats, particularly in Washington, to push back against the claims. He clarified that while Panama remains open to discussions, any decision on toll adjustments would be made through legal and institutional processes, not claims from foreign governments.
This all comes as President José Raúl Mulino confirmed that Panama would not renew its 2017 memorandum of understanding with China’s Belt and Road Initiative and suggested that the agreement could be terminated early. The initiative aims to expand China’s economic and political influence by funding and developing major projects in partner countries. Panama was the first Central American nation to join the initiative, but Mulino’s reversal aligns with growing US concerns over Beijing’s presence in the region—particularly regarding Chinese-operated ports near the Panama Canal, a critical global trade route.
