According to the U.S. State Department, Panama has agreed to remove transit fees for U.S. government ships that use the Panama Canal, which will result in annual savings for the government. After talks between Panamanian President Jose Raul Mulino and U.S. Secretary of State Marco Rubio, the agreement was reached.
President Donald Trump threatened to seize control of the canal and chastised Panama for charging exorbitant fees, which led to this decision. On his Truth Social platform, Trump had voiced his concerns, calling the fees Panama was charging “ridiculous” and accusing the U.S. Navy and commerce of unfair treatment. But Trump’s threat to retake the canal was dismissed by Mulino.
The agreement’s savings for the US government were highlighted by the US State Department when it was announced.
The decision comes after Secretary of State Marco Rubio and President Jose Raul Mulino of Panama met.
In the past, President Trump has charged Panama with charging exorbitant fees for the use of the canal.
The canal was primarily constructed by the United States in 1914, and after a period of joint administration, Panama took over in 1999.
Rubio warned Panama that if changes were not made, the U.S. would take “necessary measures” to counter China’s influence over the canal.
The “Panama Canal Repurchase Act” bill would allow Trump and Rubio to negotiate a repurchase of the canal with Panama.
The canal is a major transit hub for U.S. Coast Guard and Department of Defense vessels, and over 70% of vessels passing through it are either inbound or outbound to U.S. ports.
President Donald Trump has accused Panama of “excessive” charges, and this decision comes amid past tensions. Rubio reiterated the commitment to protect U.S. rights under current treaty agreements during a meeting with Panamanian leaders, stressing the U.S.’s readiness to take “necessary measures” if the situation remained unchanged.
Although possible explanations for the decision to waive fees are mentioned in the search results, the primary motivations for Panama’s decision are not stated clearly. Nonetheless, the search results do offer some hints about the context:
A social media post on X announced the agreement.
President Donald Trump’s criticism of “excessive” fees is consistent with the fee exemption.
increased American apprehension about China’s expanding sway over the canal region.
During a visit to Panama, Secretary of State Marco Rubio appeared to heighten security concerns with the country’s president.
