Panama Denies US Claims on Canal Agreement

panama - Panama refutes the US claim of free passage for US naval ships through the Panama Canal, leading to diplomatic tensions.

Panama Refutes US Claims of Free Passage for Naval Ships

Panama denies the recent announcement by the US State Department and Secretary of State Marco Rubio regarding free passage of US naval ships through the Panama Canal. This denial comes in response to claims made by US officials about an agreement allowing US naval vessels to pass through the canal without fees.

According to sources familiar with Rubio's visit to South America, discussions on granting free passage to US naval ships took place during the visit. However, Panamanian authorities have emphasized the importance of not violating the neutrality clause set in the 1977 agreement.

The Panama Canal authorities have expressed concerns about maintaining neutrality and ensuring that no special privileges are granted to any country, including the US, without breaching the existing agreements.

It is reported that approximately 40 US ships pass through the canal each year, representing only 0.5% of the total traffic. The US Department of Defense aims to save around $13 million annually by allowing free passage for its vessels.

Recent statements by Panama Canal administrator Ricaurte Vasquez Morales underscore the potential chaos that could arise from compromising the neutrality principle. President Donald Trump's remarks about reclaiming the canal from Panama and accusing Panama of favoring China have further strained diplomatic relations between the two countries.

Panama Denies US Claims

Panama's President Jose Raul Mulino has explicitly denied the US State Department's assertion of US government vessels passing through the canal without fees. The Panama Canal Administration clarified through its official X account that no adjustments have been made to the fees related to canal passage.

Mulino reaffirmed that Panama will retain sovereignty over the canal and ruled out any negotiations on this matter. The statement emphasized Panama's commitment to operating the canal independently and underscored that Panama will not renew the agreement related to China's Belt and Road Initiative signed in 2017.