Panama Canal Authority Denies U.S. Claim of Free Transit for Military Vessels

The Panama Canal Authority (ACP) has directly contradicted U.S. State Department claims regarding free passage for U.S. government vessels through the strategic waterway.

In a statement posted to X, the U.S. State Department announced that U.S. government vessels would no longer be charged transit fees, claiming this would save “millions of dollars a year”.

However, the ACP quickly refuted this claim, stating it “has not made any adjustments” to its toll structure.

The dispute comes amid heightened tensions over the canal’s management. President Trump previously criticized what he called “exorbitant” rates charged to U.S. Navy vessels. During a visit to Panama over the weekend, Secretary of State Marco Rubio warned that the U.S. would “take measures necessary to protect its rights” unless Panama makes immediate changes.

While Panamanian President Jose Raul Mulino reportedly assured Rubio that U.S. Navy vessels would enjoy free passage, the canal authority’s statement appears to contradict the commitment.

The ACP indicated it is “willing to establish a dialogue” with U.S. officials regarding warship transit.

Panama has also announced it would withdraw from China’s Belt and Road Initiative before its current agreement ends in 2026, and also reportedly weighing whether to cancel its contract with Hong Kong-based CK Hutchinson which operates ports near the Panama Canal.

The 51-mile waterway is managed by the Panama Canal Authority, an independent government agency, under the country’s constitution.

Panama Canal Authority statement (translated):

In response to a publication released by the United States Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, reports that it has not made any adjustments to them. With absolute responsibility, the Panama Canal Authority, as it has indicated, is willing to establish a dialogue with the relevant officials of the United States regarding the transit of warships from that country.

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