PANAMA CITY — Panamanian President José Raúl Mulino has firmly rejected the U.S. State Department’s assertion that a deal was made permitting U.S. warships to transit the Panama Canal without charge.
During a press conference, Mulino clarified that he informed the U.S. Secretary of Defense that he lacked the authority to set or waive transit fees for the canal, expressing surprise at the misleading statement released by the U.S. State Department.
“I completely reject that statement,” Mulino asserted, revealing that he had instructed Panama’s ambassador in Washington to formally contest the U.S. claim.
The controversy erupted following a statement from the U.S. State Department, which announced that “U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year.” A response from the State Department regarding Mulino’s comments was not available by Thursday.
This exchange occurred shortly after a meeting between U.S. officials and Mulino regarding the significance of the canal as a global trade route.
The American delegation conveyed concerns about Chinese influence in the canal area, an issue reportedly emphasized by U.S. President Donald Trump.
Trump’s position included the assertion that China’s activities in the region could be in violation of a treaty establishing the canal’s neutrality after the U.S. transferred control to Panama in 1999.
While canal administrators expressed willingness to discuss prioritizing U.S. warships during canal crossings, they did not indicate any considerations regarding fee exemption.
