MercoPress. South Atlantic News Agency

No free ride for US ships through Panama Canal

The Government of Panama did agree to give transit priority to US ships

The Panama Canal Authority Wednesday denied an earlier announcement by the U.S. State Department that ships flying its flag would pass through the iconic interoceanic waterway toll-free.

The geopolitical strategy announced by US President Donald Trump includes taking back control of the crossing after - he claimed - Panama reneged on its promise and allowed China and its companies to interfere in the use of the structure to the detriment of US interests, in violation of the 1977 Torrijos-Carter treaties.

According to these two documents, named after then U.S. President Jimmy Carter and General Omar Torrijos, the commander of Panama's National Guard, the Panama Canal would remain neutral and open to ships of all nations, but the United States would retain the right to defend the canal against any threats. In addition, Panama would gain full control of the canal and its operations as of December 31, 1999. Until then, the United States administered and operated the canal.

The ACP, an autonomous agency overseen by the Panamanian government, said in a statement that it had not made any changes to the fees or rights to cross the canal. It also admitted that the document was issued in response to an earlier announcement from Washington that the move would result in significant savings.

“With full responsibility, the Panama Canal Authority, as it has indicated, is willing to engage in dialogue with the relevant U.S. officials regarding the transit of warships from that country,” the canal authority stressed.

The Trump administration said Panama was charging excessive fees to use its passage, one of the busiest in the world. “If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full and without question,” Trump said last month.

The U.S. announcement came days after Secretary of State Marco Rubio met with President José Raúl Mulino. “The government of Panama has agreed to no longer charge fees to U.S. government vessels transiting the Panama Canal, saving millions of dollars annually,” the U.S. State Department said on X.

In addition, U.S. Secretary of Defense Pete Hegseth told Panama's Security Minister Frank Ábrego during a phone call Tuesday that his country needs “unrestricted access” to the canal to keep it “free from foreign interference,” according to a Pentagon statement.

Under pressure from Trump, the Panamanian government, among other things, agreed not to renew the New Silk Road cooperation agreement with China and told Rubio last Sunday that U.S. ships would be given transit priority.

“The Panama Canal Authority informed Secretary Rubio of its willingness to work with the U.S. Navy to optimize the priority of transit for its vessels through the Panama Canal,” the ACP said in a statement at the time.

Trump claimed U.S. ships were being treated “unfairly,” but Panama insisted they were charged the same rates as others under the Torrijos-Carter neutrality treaty.

Between 1998 and 2024, US warships and submarines accounted for 0.3% of Panama Canal traffic.