The United States government has secured a significant concession from Panama Canal, exempting American government vessels from paying fees to transit the Panama Canal.
This development was announced by the US Department of State on Wednesday via a tweet on its X account.
According to the tweet, the Panamanian government has agreed to waive the fees, which will result in millions of dollars in savings for the US government each year.
This agreement follows a meeting between US Secretary of State Marco Rubio and Panama’s President Jose Raul Mulino on Sunday during Rubio’s trip to Central America.
The Panama Canal has become a point of contention between the US and Panama, with President Donald Trump accusing Panama of charging excessive rates for its use.
In January, Trump stated that if Panama did not adhere to the principles of the canal’s operation, the US would demand its return.
This concession is seen as a significant victory for the US, particularly in the context of Trump’s efforts to renegotiate trade agreements and assert American interests abroad.
The exemption from Panama canal fees is expected to have a positive impact on US government finances, as well as on American shipping and trade interests.
In a related development, Panama has also announced that it will not renew its Belt and Road Initiative (BRI) agreement with China, which is set to expire in two to three years.
Additionally, Panama’s President Mulino is reportedly considering reviewing a 25-year concession with Hutchison Port Holdings, a Hong Kong-based terminal operator with alleged links to the Chinese government.
