The Panama Canal Authority has refuted claims by the US State Department suggesting that US government vessels can now traverse the Panama Canal without incurring fees. The disagreement emerged following a State Department statement, accompanied by an image of a naval vessel entering the canal's locks, which purported that such a financial arrangement would save the US government millions annually. In stark contrast, the Panama Canal Authority asserted that no adjustments have been made to the fee structure for transiting the canal.
The Panama Canal has been under the operation of the Panama Canal Authority since 2000, following its return to Panama under a 1977 treaty. This treaty grants the US the right to intervene militarily if the canal's operations face disruption from internal conflict or foreign powers. Despite the change in control, more cargo now flows through the canal than during its prior years under US management.
Historically, the United States has paid a cumulative total of $25.4 million over 26 years for the transit of its warships and submarines through the canal. On average, these payments amount to less than $1 million annually. However, recent developments have brought this fee structure into question.
“US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year,” – State Department
In response, Panama issued a statement through its canal authority, clarifying its position and refuting the State Department's assertions.
“In response to a publication released by the United States Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, reports that it has not made any adjustments to them,” – Panama Canal Authority
The operational oversight of the canal's terminals falls under Panama Ports, a subsidiary of CK Hutchison Holdings. This Hong Kong-based conglomerate is one of the world's largest port operators and manages 53 ports across 24 countries, including several US allies such as the UK, Australia, and Canada. Despite these international ties, the Panama Canal Authority remains an independent entity. Its leadership—comprising an administrator, deputy administrator, and an 11-member board—is selected by Panama's government but operates autonomously.
Amid this dispute, former President Donald Trump previously commented on China's involvement with the canal's operation, alluding to potential repercussions.
“China is running the Panama Canal that was not given to China, that was given to Panama foolishly, but they violated the agreement, and we’re going to take it back, or something very powerful is going to happen,” – President Donald Trump
