The longstanding debate over control and passage rights of the Panama Canal has intensified following recent comments by U.S. President Donald Trump and diplomatic exchanges between American and Panamanian officials. President Trump has reiterated his desire for the United States to regain control of the canal, a strategic 51-mile (82km) waterway linking the Atlantic and Pacific Oceans. This renewed interest comes amid U.S. concerns over China's growing influence in Panama.
The canal, an engineering marvel constructed by the United States in the early 20th century, was gradually transferred to Panamanian control after President Jimmy Carter signed a treaty in 1977. Today, all vessels crossing the canal must pay a fee based on size and type, though U.S. ships are given priority. However, recent assertions from the U.S. State Department that American government vessels can transit without charge have sparked controversy.
"U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year." – State Department
This claim, which was later retracted by U.S. Secretary of State Marco Rubio, has been met with strong criticism from Panama. President José Raúl Mulino has accused the U.S. of spreading misinformation regarding canal tolls and control.
"this method of managing bilateral relations on the basis of lies and falsehoods" – José Raúl Mulino
The Panama Canal Authority (ACP) confirmed that no adjustments to tolls have been made, contradicting U.S. statements. Meanwhile, Rubio's Central American tour focusing on migration and drug trafficking included a meeting with the canal's administrator, Ricaurte Vásquez Morales, and President Mulino. During this meeting, Rubio demanded changes to China's influence over the canal, further straining diplomatic relations.
China's Foreign Affairs spokesman, Lin Jian, defended its partnership with Panama, highlighting successful collaborations and urging resistance against external interference. Despite these tensions, Panama has decided not to renew its membership in China's Belt and Road Initiative following discussions with Rubio.
Mulino remains firm in his stance that the canal remains under Panamanian control and dismissed claims that its trade route could be jeopardized.
"It's not as if the canal toll is breaking the economy of the United States" – José Raúl Mulino
The 1977 treaty between the two nations obliges the U.S. to protect the canal if it comes under attack, underscoring the strategic importance of this waterway to American interests.