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Friday, Feb 07, 2025
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Panama President Accuses US of Misrepresentation Over Canal Transit Fees
Tensions rise as Panama rejects US claims regarding fee exemptions for government vessels in the Panama Canal.
Panama's President José Raúl Mulino has publicly accused the United States of disseminating 'lies and falsehoods' following a statement from the US State Department.
The claim suggested that American government vessels could transit the Panama Canal without incurring fees, which Mulino criticized as inaccurate.
In response to the controversy, US Secretary of State Marco Rubio modified his department's statement, referring to the existing tolls as 'absurd,' attributed to obligations under a treaty that commits the US to protect the canal in the event of an attack.
The Panama Canal, a critical 51-mile (82km) waterway linking the Atlantic and Pacific Oceans, traditionally requires all vessels to pay fees for passage, determined by various factors including vessel size and type.
However, US vessels are granted priority for transit.
On a social media platform, the State Department announced, 'U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year.' This statement provoked a strong rebuttal from President Mulino, who emphasized that he cannot accept a bilateral relationship founded on misinformation.
He instructed Panama's ambassador in Washington to take 'firm steps' to contest the claim.
Mulino asserted that US government vessels, including naval ships, contribute approximately '$6-7 million annually' toward passage fees.
He remarked, 'It's not as if the canal toll is breaking the economy of the United States.'
The Panama Canal Authority (ACP) affirmed that there had been 'no adjustments' to the existing toll structure, and expressed willingness to engage in dialogue about the matter.
Following a meeting between Rubio and Mulino, Panama announced its intention to withdraw from China's Belt and Road Initiative, a move that Rubio hailed as a significant advancement.
However, Panama clarified that the decision was not made under US influence.
President Trump has previously articulated concerns regarding Chinese control over the Panama Canal, suggesting potential risks in crisis situations.
Both Panama and China have denied claims of any threat to US access.
On Wednesday, Lin Jian, a spokesperson for China's Foreign Affairs, described the partnership with Panama as productive and encouraged the nation to 'resist external interferences.'
Secretary of State Rubio's tour of Central America is focused on addressing issues related to migration and drug trafficking, with his remarks concerning Mulino's allegations made during his final stop in the Dominican Republic.
The discourse surrounding the Panama Canal highlights longstanding sensitivities linked to its history and control following the US cession of the waterway to Panama in 1999.
The claim suggested that American government vessels could transit the Panama Canal without incurring fees, which Mulino criticized as inaccurate.
In response to the controversy, US Secretary of State Marco Rubio modified his department's statement, referring to the existing tolls as 'absurd,' attributed to obligations under a treaty that commits the US to protect the canal in the event of an attack.
The Panama Canal, a critical 51-mile (82km) waterway linking the Atlantic and Pacific Oceans, traditionally requires all vessels to pay fees for passage, determined by various factors including vessel size and type.
However, US vessels are granted priority for transit.
On a social media platform, the State Department announced, 'U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year.' This statement provoked a strong rebuttal from President Mulino, who emphasized that he cannot accept a bilateral relationship founded on misinformation.
He instructed Panama's ambassador in Washington to take 'firm steps' to contest the claim.
Mulino asserted that US government vessels, including naval ships, contribute approximately '$6-7 million annually' toward passage fees.
He remarked, 'It's not as if the canal toll is breaking the economy of the United States.'
The Panama Canal Authority (ACP) affirmed that there had been 'no adjustments' to the existing toll structure, and expressed willingness to engage in dialogue about the matter.
Following a meeting between Rubio and Mulino, Panama announced its intention to withdraw from China's Belt and Road Initiative, a move that Rubio hailed as a significant advancement.
However, Panama clarified that the decision was not made under US influence.
President Trump has previously articulated concerns regarding Chinese control over the Panama Canal, suggesting potential risks in crisis situations.
Both Panama and China have denied claims of any threat to US access.
On Wednesday, Lin Jian, a spokesperson for China's Foreign Affairs, described the partnership with Panama as productive and encouraged the nation to 'resist external interferences.'
Secretary of State Rubio's tour of Central America is focused on addressing issues related to migration and drug trafficking, with his remarks concerning Mulino's allegations made during his final stop in the Dominican Republic.
The discourse surrounding the Panama Canal highlights longstanding sensitivities linked to its history and control following the US cession of the waterway to Panama in 1999.
