US and Panama Clash Over Canal Free Passages Claim
The issue escalated during a Latin American tour by US Secretary of State Marco Rubio. During his visit to Panama, Rubio demanded “immediate changes” to address what he called China’s “growing influence and control” over canal operations. Rubio also met with Panama’s President José Raúl Mulino and Ricaurte Vásquez Morales, the canal’s administrator, to discuss the waterway’s future.
In an official statement following Rubio’s visit, the ACP announced it would work with the US Navy to optimize transit priority for American vessels. However, the toll policy remained unchanged. “There is no agreement to offer free transit,” the ACP reiterated this week.
US government ships represent a significant portion of traffic through the canal, with 52% of transits in 2024 involving US ports as origin or destination, according to official statistics. The canal is pivotal to avoiding the costly and time-consuming route around South America’s southern tip.
Growing Tensions Between the US, Panama, and China
President Donald Trump has been vocal about his dissatisfaction with China’s alleged influence in Panama. In his inauguration speech, Trump declared plans to “take back” the canal, criticizing a 1977 treaty signed by President Jimmy Carter that handed over canal control to Panama. He called the decision “a big mistake.”
Trump has also accused Panama of failing to uphold its neutrality agreement, a claim the Panamanian government strongly denies. President Mulino has stated multiple times that “the Panama Canal is and will remain under Panamanian control.”
Further complicating matters, Mulino has announced Panama’s decision to withdraw from China’s Belt and Road Initiative, a global infrastructure program launched by Beijing. He rejected Trump’s accusations regarding China, saying, “No nation interferes with our administration.”
Despite Trump’s claims, analysts suggest his remarks are aimed at leveraging political support. Earlier this week, Trump vaguely acknowledged that Panama had “agreed to certain things” but declined to elaborate.
US and Canal History: A Source of Strategic Importance
The Panama Canal has long played a central role in US-Latin American relations. Built by the United States in the early 20th century, it was a critical asset for global trade and military strategy. However, growing tensions between Panama and the US led to years of protest, culminating in the 1977 handover treaty signed by President Carter.
As of today, control of the canal remains sensitive. The Panama Canal Authority operates as an independent entity responsible for managing toll policies, traffic flow, and maintenance. However, the growing geopolitical rivalry between the US and China has brought the canal back under the diplomatic spotlight.
With 14,000 vessels transiting annually and the majority of them linked to the US, the Panama Canal remains a linchpin in global trade. Any policy shifts or geopolitical interference could have far-reaching implications for both countries and global commerce.
Future of US-Panama Relations
The ongoing dispute over free canal passages adds to intensifying geopolitical strains. As Secretary of State Rubio calls for “necessary measures” to ensure US interests are protected, Panama has emphasized its commitment to neutrality and independence.
For now, the ACP maintains that the canal’s toll structure remains unchanged and firmly under its control. Whether Trump’s administration pursues further actions or takes a more collaborative stance with Panama remains to be seen. Panama, on the other hand, faces mounting global scrutiny as it balances relationships with both the US and China while managing one of the world’s most important waterways.
External Link :
Learn more about global trade disputes on BBC
Internal Link :
Explore updates on US foreign policy in Latin America
