Panama Denies US Claims of Toll-Free Access to the Panama Canal

Panamanian President José Raúl Mulino has strongly denounced a statement issued by the US government, which falsely claimed that Panama had agreed to waive tolls for US ships transiting the Panama Canal.

On Feb. 5, the US State Department announced on X that US government ships would now be allowed to transit the Panama Canal toll-free, resulting in substantial savings for the US government. The statement was accompanied by an image of a US naval ship entering the canal locks.

In response to the US State Department's claim, the Panama Canal Authority, which holds exclusive authority over tolls and charges for canal transit, reaffirmed that no modifications to the toll fees have been made. The Authority also emphasized its openness to engaging in constructive dialogue with the US government to clarify the situation.

"I am deeply surprised by yesterday’s statement from the State Department because they are making significant declarations based on a falsehood, and that is simply and unequivocally intolerable," said Mulino, as reported by CNN.

Mulino further addressed the issue, underscoring that toll fees for US vessels are neither excessive nor burdensome. He explained that these fees total approximately US$6 million to US$7 million annually, a cost that he deemed manageable for the US economy, contingent upon the volume of ships transiting the canal. 

Mulino also revealed that he had directly communicated with Panama’s Ambassador to the United States, José Miguel Alemán, urging him and other ambassadors around the world to "refute this situation."

Reclaiming the Panama Canal?

Trump reignited a historical controversy by declaring his intent to “take back” the Panama Canal, citing grievances over its management and alleged unfair treatment of US vessels, blaming China for gaining control. “China is operating the Panama Canal, and we did not give it to China. We gave it to Panama, and we are taking it back,” says Trump. 

In response to the US Department's claims, China vehemently denied the accusations of interference and reaffirmed its respect for Panama's sovereignty over the canal. China also emphasized the internationally recognized status of the Panama Canal as a permanently neutral waterway. “China fully respects the management and operation of the canal by the Panamanian government and has never interfered in canal affairs,” said Spokesperson for the Chinese Foreign Ministry Guo Jiakun.

The Panama Canal remains critical to global and US trade. According to statistics provided by the Panama Canal, the Top 5 countries by origin and destination of cargo are the United States (74.7%), China (21.4%), Japan (14.6%), South Korea (9.4%), and Chile (8.3%). In 2023, the United States exported 125.6 million long t of cargo through the canal, with 64% destined for Asia, while importing 61.1 million long t, primarily from Asia. Texas’s energy trade alone accounts for 23% of the total cargo transiting the canal, as previously reported by MBN.