Panama denied making changes to allow US government ships to transfer the Panama channel for free, following the White House allegations that she had agreed to such a step.
The Ministry of Foreign Affairs said in a statement that its government ships “can now transfer the Panama channel without fees, which provides the United States government millions of dollars annually.”
In response to the comments, the Panama Channel Authority (ACP) said it “was enabled to set fees and other fees to transmit the channel,” adding that “no modifications were made of it.”
US President Donald Trump has repeatedly expressed his desire to regain control of the waterway, the key to global trade.
The Panama channel reduces 51 miles (82 km) across the Central America and is the main relationship between the Atlantic and Pacific Ocean.
Foreign Minister Marco Rubio, who was on a visit to Latin American countries this week, demanded that Panama make “immediate changes” on what he calls “the effect and control of China on the channel.
The best diplomat in America said that Panama should act or that the United States will take the necessary measures to protect its rights under a treaty between the two countries.
During a visit to the country, Rubio met with President Panama Jose Raul Mulino, as well as the channel official, Ricort Vakuiz Morales.
ACP said after his visit that it had conveyed his intention to work with the US Navy to improve the priority of transportation in its ships through the channel.
He said this commitment to dialogue with Washington.
American vessels make up a large percentage of traffic in the channel. In 2024, 52 % of transit across the waterway ports or destination in the United States, according to the channel authorities.
Using up to 14,000 channel ships every year to avoid a long and expensive trip around the end of South America.
In his opening speech, President Trump said he intended to “restore” the channel, claiming that China was working on it and that Panama “broke” a promise to stay neutral.
The plan was strongly rejected by Mulino, who said that the main commercial track “is and will remain” in the hands of the country.
Trump’s allegations also rejected China’s influence, saying that “there is no nation in the world that interferes with our administration.”
Trump recently repeated his claim. Although he said earlier this week, he was “unhappy” in the situation, he admitted that Panama “agreed to certain things.” Mulino said his country will not continue its membership in the infrastructure building program in China, the Belt and Road Initiative.
The United States built the channel in the early twentieth century, but after years of protest, President Jimmy Carter signed a treaty with Panama in 1977 to gradually control the waterway, which Trump described as a “big mistake.”
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