Panama’s President José Raúl Mulino has accused the United States of spreading "lies and falsehoods." This came after the U.S. State Department claimed that American government vessels no longer needed to pay fees to transit through the Panama Canal. In response, U.S. Secretary of State Marco Rubio backtracked on the claim, calling the fee "absurd." Rubio argued that the fee was unfair due to a treaty that obligates the U.S. to protect the canal in case of an attack.

Trump’s Ongoing Interest in the Canal

US President Donald Trump has repeatedly expressed interest in regaining control of the Panama Canal since taking office. He has not ruled out using force to take it back. Trump is scheduled to meet with Mulino on Friday to discuss these issues further.

The Panama Canal: A Key Waterway

The Panama Canal is a vital 82-kilometer (51-mile) passage connecting the Atlantic and Pacific Oceans. All vessels, regardless of nationality, must pay tolls based on their size and type. However, U.S. ships are given priority for passage due to long-standing agreements.

State Department’s Announcement

On Wednesday, the U.S. State Department posted a statement claiming, "U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year." This sparked a strong reaction from Mulino, who immediately rejected the claim. He stated that such actions are "intolerable" and instructed his ambassador in Washington to take firm steps to address the issue.

Mulino’s Response

Mulino emphasized that U.S. government vessels, including navy ships, have been paying $6-7 million annually for the right to use the canal. "It’s not as if the canal toll is breaking the economy of the United States," he added. His comments highlighted the importance of fair dealings in international relations.

Panama Canal Authority’s Position

The Panama Canal Authority (ACP) also responded, stating that no changes had been made to the toll system. The ACP made it clear that it was open to establishing a dialogue with the U.S. to resolve the matter.

Panama’s Shift on China’s Belt and Road Initiative

After the meeting between Rubio and Mulino, Panama announced it would not renew its participation in China’s Belt and Road Initiative. Rubio welcomed this move, calling it "a great step forward." However, Panama denied that the decision was made under U.S. pressure, stating it was a sovereign choice.

China’s Response

Trump has voiced concerns that China might close the canal to the U.S. in the event of a crisis. Both Panama and China have strongly denied these claims. On Wednesday, China’s Foreign Ministry spokesperson Lin Jian urged Panama to "resist external interferences." He also praised the growing partnership between Panama and China, highlighting its "fruitful results."