Panama’s President, José Raúl Mulino, has accused the US of spreading “lies and falsehoods” regarding Panama Canal fees. His reaction came after the US State Department claimed that American government vessels no longer needed to pay for passage.

Later, US Secretary of State Marco Rubio corrected the statement. However, he still called the fees for American ships “absurd.” According to him, a treaty requires the US to protect the canal in case of an attack.

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Meanwhile, US President Donald Trump has repeatedly expressed his desire to regain control of the canal. Since taking office, he has refused to rule out using force. Furthermore, he is scheduled to speak with Mulino on Friday.

Panama Rejects US Claims on Canal Fees

The Panama Canal is a 51-mile (82-kilometer) waterway that connects the Atlantic and Pacific Oceans. Every vessel must pay a fee based on its size and type. However, US ships receive priority passage.

On Wednesday, the US State Department posted online:
“U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year.”

As a result, Mulino strongly denied this claim. He stated that he rejects “this method of managing bilateral relations on the basis of lies and falsehoods.” Consequently, he directed Panama’s ambassador in Washington to take firm action against the false statement. He called it “simply and plainly intolerable.”

Moreover, Mulino clarified that US government vessels, including navy ships, pay $6-7 million per year for passage. He dismissed concerns about the tolls being a burden on the US economy.
“It’s not as if the canal toll is breaking the economy of the United States,” he added.

Similarly, the Panama Canal Authority (ACP) confirmed that no policy changes had been made. In a statement, it emphasized that no adjustments had occurred. Additionally, it reassured that Panama remains open to discussions.

Panama Ends Ties with China’s Belt and Road Initiative

Following a meeting between Rubio and Mulino, Panama announced its withdrawal from China’s Belt and Road Initiative, a global infrastructure project. In response, Rubio welcomed the decision, calling it “a great step forward.” However, Panama insisted that it made this choice independently, not under US pressure.

At the same time, Trump has repeatedly warned that China could block US access to the canal during a crisis. Nevertheless, both Panama and China have denied this possibility.

On Wednesday, Chinese Foreign Affairs spokesman Lin Jian defended the partnership. He stated that the relationship had produced “fruitful results.” Furthermore, he urged Panama to “resist external interferences.”