U.S. naval toll exemption claim denied by Panama Canal
The U.S. Department of State recently announced that U.S. Navy ships have been exempted from tolls for passing through the Panama Canal. According to the "Wall Street Journal," the announcement from Washington surprised the authority managing the canal, prompting a response.
The Panama Canal Authority strongly denied the reports from the U.S. Department of State, asserting that U.S. warships would not be exempt from tolls for passing through the canal.
"In response to a publication issued by the US Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, announces that it has not made any adjustments to these fees," stated the Panamanian agency managing the canal in a statement.
It added that it "is willing to establish a dialogue with the pertinent officials of the United States with respect to the transit of US warships."
Diplomatic meetings
The reports concerning toll exemption surfaced after a meeting between U.S. Secretary of State Marco Rubio and Panama's President, Raul Mulino. On Wednesday, Mulino spoke by phone with Pentagon Chief Pete Hegseth, but the communication following this conversation did not mention tolls.
According to the "Wall Street Journal," Panama was surprised by the announcement from Washington, which was reaffirmed by the White House. They only agreed to conduct a legal analysis of the possibility of a toll exemption to ensure that it does not violate the canal's neutrality principle and the equal treatment of all countries, as stipulated in the 1977 treaty with the USA.
Large U.S. warships cannot pass through the narrow canal, and smaller vessels use it infrequently, about 40 times a year, accounting for 0.5 percent of all transits. The Pentagon estimates that the toll exemption would save about 13 million dollars.
The toll issue was one of Donald Trump's criticisms of the Central American country's authorities, claiming that American crews pay more than others. The Panama Canal Authority rejected these accusations, warning that preferential treatment for the USA could lead to chaos.
In his inaugural speech on January 20, U.S. President Donald Trump warned that the United States could take control of the Panama Canal if it believes Panama is not adhering to the 1977 treaty terms. He previously emphasized that handing control to Panama over this strategically important waterway in 1999 was a "gesture of cooperation," not a concession.