US and Panama Reach Agreement to Eliminate Transit Fees for Government Vessels
The U.S. State Department on Wednesday announced a new deal with the government of Panama that will eliminate charge fees for U.S. government vessels.
“The government of Panama has agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal,” the State Department wrote in an X post Wednesday night.
The new agreement will save the U.S. government millions of dollars a year, officials noted.
During a recent meeting, Panama President José Raúl Mulino promised to end a key development deal with China after discussions with Secretary of State Marco Rubio.
Former Florida Senator Rubio emphasized in an X post that “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.”
Former President Donald Trump has criticized the fees imposed on U.S. ships and has suggested repurchasing the canal, which was originally built by the U.S. before being handed over to Panama during the Carter administration.
A newly introduced bill called the “Panama Canal Repurchase Act” would give Trump and Rubio the authority to negotiate with Panama to repurchase the canal.
According to the State Department, over 70 percent of all vessels traveling through the canal are either headed to or from U.S. ports. The canal serves as a crucial transit point for U.S. Coast Guard and Department of Defense vessels.
If ships were to bypass the canal, they would need to travel an additional 8,000 miles around South America.
Fox News Digital has requested comment from the State Department but did not receive an immediate response as of Wednesday night.
