Panama has firmly rejected the United States’ claim that it had secured free passage for U.S. government vessels through the Panama Canal. This dispute has escalated tensions between the two nations, particularly following recent comments from U.S. officials suggesting that such an agreement had been reached.
Key Takeaways
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Panama denies U.S. claims of free passage for government vessels.
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President Mulino calls U.S. assertions “intolerable” and “false.”
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The U.S. State Department claims the agreement would save millions.
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Panama’s withdrawal from China’s Belt and Road Initiative adds to the controversy.
Background of the Dispute
The Panama Canal, a crucial maritime route that connects the Caribbean Sea to the Pacific Ocean, handles approximately 5% of global maritime trade. Recently, the U.S. State Department announced that Panama had agreed to allow U.S. government vessels to transit the canal without fees, a claim that sparked immediate backlash from Panamanian officials.
Panamanian President Jose Raul Mulino stated that the U.S. assertion was “simply and plainly intolerable,” emphasizing that he would not engage in bilateral relations based on lies. He further clarified that U.S. government vessels currently pay between $6 to $7 million annually for passage, a fee he argued does not significantly impact the U.S. economy.
U.S. Claims and Reactions
The U.S. State Department’s announcement suggested that the supposed agreement would save the government millions of dollars each year. However, the Panama Canal Authority (PCA), which operates the canal, quickly refuted this claim, stating that no changes had been made to its tariff structure. The PCA expressed its willingness to engage in dialogue with U.S. officials regarding the transit of military vessels but maintained that no adjustments had been made.
The Broader Context
This dispute comes amid heightened concerns in Washington regarding Chinese influence in the region. The U.S. has accused Panama of allowing excessive Chinese investment in the canal, particularly through CK Hutchison Holdings, which manages two of the canal’s five ports. President Trump has previously threatened to reclaim control of the canal, which was originally built by the U.S. and handed over to Panama in 1999.
In a significant development, President Mulino announced that Panama would withdraw from China’s Belt and Road Initiative (BRI), a move that aligns with U.S. interests in reducing Chinese influence in the region. This decision marks Panama as the first Latin American country to exit the BRI, which has faced criticism from the U.S. as a tool for Chinese expansionism.
Conclusion
The ongoing tensions between Panama and the United States over the Panama Canal highlight the complexities of international relations in the region. As both nations navigate their interests, the implications of this dispute could have lasting effects on trade and diplomatic relations. The situation remains fluid, with potential for further developments as both sides continue to assert their positions.
Sources
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‘Intolerable’ US claim sparks new row over Panama Canal – Legit.ng, Legit.ng.
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‘Intolerable’ US claim sparks new row over Panama Canal | National | lebanondemocrat.com, Lebanon Democrat.
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‘Intolerable’ US claim sparks new row over Panama Canal, MSN.
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Panama Canal denies US claim of free passage through waterway | South China Morning Post, South China Morning Post.
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Panama Canal Authority Denies Trump’s Claim of Free Passage for U.S. Ships | Democracy Now!, Democracy Now!.
