Washington: The U.S. Department of State announced on Wednesday that American government vessels are now exempt from transit fees when passing through the Panama Canal.
“The government of Panama has agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal,” the department stated in a post on X.
U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year. pic.twitter.com/G4gV2mHu7O
— Department of State (@StateDept) February 6, 2025
According to the State Department, this agreement will result in significant cost savings, potentially amounting to millions of dollars annually for the U.S. government. The Panama Canal Authority has yet to issue a response to the announcement.
The decision follows U.S. Secretary of State Marco Rubio’s meeting with Panama’s President Jose Raul Mulino on Sunday during his visit to Central America. The discussions are believed to have played a role in securing the fee exemption.
Panama has become a focal point in the Trump administration’s policies, with President Donald Trump previously criticizing the Central American country for what he described as excessive toll rates imposed on U.S. vessels using the canal.
Also Read | Inaugural Director of U.S. AI Safety Institute Steps Down Amid Uncertainty
“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question,” Trump stated last month.
Also Read | New Trump Executive Order Targets Transgender Athletes in Women’s Sports
Mulino has dismissed Trump’s remarks about the U.S. reclaiming control of the canal, emphasizing Panama’s sovereign authority over the strategic waterway. The Panama Canal, originally constructed with extensive U.S. involvement, was under American administration for decades. However, a series of agreements signed between Washington and Panama in 1977 set the stage for a gradual transfer of control. The canal was fully handed over to Panama in 1999 following a period of joint governance.
