The Panama Canal, a 51-mile marvel of engineering linking the Atlantic and Pacific Oceans, has become a focal point of contention between Panama and the United States. Built by the US in the early 20th century, the canal serves as a crucial maritime shortcut for approximately 14,000 ships annually, significantly reducing travel time and costs that would otherwise be incurred by navigating around South America's southern tip. In 2024, US-related traffic accounted for 52% of all transits through this vital waterway.
Recent claims by the US State Department suggest that American government vessels "can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year." However, the Panama Canal Authority (ACP) insists it is "empowered to set tolls and other fees for transiting the canal" and has "not made any adjustments to them." The ACP also expressed its willingness to collaborate with the US navy to prioritize transit for its vessels.
In 1977, a significant treaty between the US and Panama set in motion a gradual handover of control of the canal to Panama. President Jimmy Carter signed this treaty, which former US President Donald Trump later deemed "a big mistake." Currently, Secretary of State Marco Rubio has called for "immediate changes" in response to what he perceives as "influence and control" by China over the canal.
Panama's President José Raúl Mulino firmly denied these allegations, asserting that the canal "is and will remain" under Panama's administration. He emphasized that there is "no presence of any nation in the world that interferes with our administration," directly addressing Trump's concerns about foreign influence.
The ACP's role as the body authorized to manage canal operations, including setting transit tolls and fees, remains unaffected by these international tensions. Despite the political pressure from the US, Panama has not altered its course regarding free passage for US ships. The ACP reiterated its stance by stating it had "not made any adjustments" to tolls or fees.