Panama Waives Fees for U.S. Government Vessels Transiting the Panama Canal, According to State Department

February 6, 2025 TruthUSA

Panama has consented to eliminate fees, which total millions annually, for the utilization of the Panama Canal by the U.S. government, according to the State Department.

On Wednesday, the Department of State announced that U.S. government vessels can now navigate the Panama Canal without incurring charge fees, resulting in significant savings for the U.S. government.

“The government of Panama has agreed to waive fees for U.S. government vessels transiting the Panama Canal,” the State Department stated in a social media post.

Fees for traversing the Panama Canal, imposed by the Panama Canal Authority (ACP), comprise base transit tolls, reservation charges, and penalties for cancellations.

This announcement follows U.S. Secretary of State Marco Rubio’s meeting with Panama’s President Jose Raul Mulino on February 2 during a six-day visit to Central America, which included stops in El Salvador, Costa Rica, Guatemala, and the Dominican Republic.

The State Department noted that Rubio aimed to promote Trump’s America First foreign policy during his trip, concluding on February 6.

After discussions with Rubio, Mulino announced on February 2 that Panama would not renew its involvement in China’s Belt and Road Initiative (BRI), also referred to as “One Belt, One Road.” Mulino indicated that the agreement, expected to expire in two to three years, could be terminated sooner.

Panama became a member of the BRI in November 2017, marking it as the first Latin American nation to officially join the Chinese government’s infrastructure initiatives. This occurred five months after Panama cut diplomatic ties with Taiwan.

On his first day in office, President Donald Trump expressed his desire to reclaim control of the Panama Canal.

Presently, CK Hutchison Holdings, a Hong Kong-based company, oversees two ports at either end of the Canal—raising concerns due to China’s influence over Hong Kong entities. Additionally, two state-owned Chinese companies are constructing a fourth bridge across the canal.

Trump has accused the Central American nation of levying unreasonable fees for canal passage and expressed worries about the Chinese Communist Party’s broader influence in the Panama Canal region, referencing the 1977 “Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.” This treaty allowed the U.S. to transfer control of the canal to Panama in 1999 under the stipulation of maintaining its neutrality.

“Should the principles, both moral and legal, of this generous act be disregarded, we will demand the Panama Canal be returned to us, completely and without hesitation,” Trump declared last month.

In response, Mulino rejected Trump’s suggestion that the U.S. should regain control over the canal, which was primarily constructed with assistance from the U.S. Army Corps of Engineers prior to the signing of the Torrijos-Carter Treaties in 1977. Following a phase of joint American-Panamanian governance, the U.S. transferred control of the Panama Canal to Panama in 1999. For decades, the United States managed the lands surrounding the canal.

The Panama Canal Authority, responsible for the canal’s operation and management, did not provide a comment by the time of publication.

Frank Fang, Aldgra Fredly, and Reuters contributed to this report.

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