US Government Vessels Exempt from Panama Canal Transit Fees
The U.S. State Department announced that U.S. government vessels can now pass through the Panama Canal without fees, a move expected to save millions annually. This follows an agreement between the U.S. and Panama.
The State Department announced on Wednesday that U.S. government vessels can now transit the Panama Canal without incurring any fees. This decision comes after the government of Panama agreed to waive such charges.
"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, emphasizing that this agreement is set to save the U.S. government millions of dollars annually.
The Panama Canal Authority has not yet responded to requests for comments regarding this new arrangement.
Secretary of State Marco Rubio recently met with Panama's President Jose Raul Mulino during a visit to Central America. The Panama Canal has become a significant topic for the Trump administration, as President Donald Trump has accused Panama of imposing excessive rates for canal usage.
"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 in a prior announcement.
President Mulino has rejected Trump's assertion that the U.S. may retake control of the canal, which was primarily constructed by the U.S. After decades of U.S. administration, two accords signed in 1977 led to the canal's return to Panama's full control.
The transfer was completed in 1999 following a period of joint administration.
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