SHIPPING

Panama Canal Authority Denies Free Transit Agreement for U.S. Vessels

The Panama Canal Authority (ACP) has denied making any changes to allow free transits for U.S. government vessels, following claims by the U.S. State Department that such an arrangement had been agreed upon.

The State Department had announced on social media that U.S. government vessels could now use the canal without paying fees, which it said would save millions of dollars annually.

In response, the ACP issued a statement asserting its authority to set tolls and other transit fees, emphasizing that no adjustments had been made.

During a recent visit to Panama, U.S. Secretary of State Marco Rubio urged the Panamanian government to address what he described as Chinese influence over the canal. Rubio warned that the U.S. would take necessary measures to protect its interests under the treaty governing the canal if changes were not made. Rubio met with Panama’s President José Raúl Mulino and the canal's administrator, Ricaurte Vásquez Morales. The ACP later confirmed its intention to continue discussions with the U.S. Navy to optimize transit priority for U.S. vessels.

According to the canal authorities, U.S.-linked shipping accounted for 52% of the canal’s traffic in 2024. Approximately 14,000 ships transit the 82-kilometer waterway each year, providing a vital connection between the Atlantic and Pacific Oceans and avoiding the longer and more expensive route around South America.

President Donald Trump has frequently criticized the 1977 treaty signed by former U.S. President Jimmy Carter, which transferred control of the canal to Panama by the end of 1999. Trump has described the handover as a "mistake" and has expressed interest in reclaiming control, alleging that Panama has allowed Chinese influence over the waterway.

President Mulino rejected these claims, reaffirming that Panama maintains full control of the canal. He also confirmed that Panama will withdraw from China's Belt and Road Initiative, though he emphasized that there is no foreign interference in the canal’s administration.