Thu Feb 06 06:10:11 UTC 2025: ## US Claims Free Panama Canal Passage, Panama Denies Agreement

**Washington, D.C. – February 6, 2025** – The United States claimed Wednesday that it had secured free passage for its government vessels through the Panama Canal, a move reportedly prompted by President Donald Trump’s pressure. However, the Panama Canal Authority swiftly refuted this claim.

The U.S. State Department announced on X (formerly Twitter) that U.S. government vessels would no longer be charged tolls, resulting in millions of dollars in annual savings. This announcement followed comments from U.S. Secretary of State Marco Rubio, who suggested Panama had offered concessions during recent talks.

The Panama Canal Authority, however, released a statement clarifying that no such agreement had been reached and that no changes had been made to transit fees. While expressing willingness to continue dialogue with U.S. authorities, the Authority maintained its authority over toll setting.

Secretary Rubio justified the U.S. position by arguing it was unfair for the U.S. to bear the cost of defending the vital waterway while also paying tolls. While U.S. government vessels, primarily naval ships, constitute a small percentage of canal traffic (aircraft carriers are too large to transit), the issue is politically significant.

The dispute comes amid heightened tensions between the U.S. and Panama, fueled by President Trump’s repeated threats, including suggesting the potential use of force to seize the canal, which handles 40% of U.S. container traffic. Trump and Rubio have also voiced concerns over Chinese investment near the canal.

Panama has denied accusations of granting China operational control of the canal but has taken steps to appease U.S. concerns, including withdrawing from China’s Belt and Road Initiative. While Secretary Rubio described recent talks as “respectful” and potentially productive, President Trump expressed dissatisfaction, despite acknowledging some concessions. Further talks are scheduled for Friday. The controversy also involves an audit ordered by Panamanian President Jose Raul Mulino of Panama Ports Company, a subsidiary of CK Hutchison Holdings, which operates major ports near the canal. This audit follows growing U.S. concerns about China’s influence in Hong Kong, where CK Hutchison is based.

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