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Panama cancels canal transit fees for US government vessels - State Department

Panama cancels canal transit fees for US government vessels - State Department US Department of State (photo: Getty Images)

The government of Panama has agreed to waive financial fees for vessels owned by the US government for transit through the Panama Canal. These ships will now be able to use this waterway without payment, according to the US State Department's Twitter (X) account.

The US State Department noted that this exemption from fees will help the government save several million dollars annually.

"US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year," the State Department's post reads.

The statement does not mention any other ships or vessels for which the Panamanian authorities may have agreed to waive transit fees through the canal.

What preceded this

The State Department's statement was preceded by an announcement from the Pentagon about negotiations between US Secretary of Defense Pete Hegseth, Panamanian Minister of Public Security Frank Alexis Ábrego, and later Panamanian President José Raúl Mulino. Among other topics, the discussions addressed the protection of the Panama Canal and keeping it free from foreign interference.

The US Department of Defense stated that the two countries had agreed to expand cooperation between the US military and Panama's security forces.

In talks with the Panamanian president, the discussion focused on the strong relationship and many shared security interests of the UnS and Panama, including the protection of the Panama Canal. The Pentagon highlighted the broad and enhanced cooperation between the US and the Panama Canal Authority.

President Mulino also welcomed the upcoming visit of the Secretary of Defense to Panama.

Issue of control over the Panama Canal

Former US President Donald Trump made several statements about the intention to regain US control over the Panama Canal. He accused Panama of violating agreements and claimed that China allegedly manages the canal.

In response, Panamanian President José Raúl Mulino firmly stated that Panama itself governs the canal, which is critical to global trade, including that of the United States. Mulino emphasized that the canal is and will remain Panamanian.

In early February, US Secretary of State Marco Rubio visited Panama and presented an ultimatum to President Mulino regarding the Panama Canal during their meeting.

Following Rubio's visit, President Mulino agreed not to extend agreements with China concerning the canal.