Canal Fees Dispute Escalates as Panama Rejects US Proposal

Canal Fees Dispute Escalates as Panama Rejects US Proposal

The Panama Canal Authority has denied US claims that it has agreed to exempt US government ships from tolls when passing through the canal. The authority stated that it has made “no adjustments to these tolls.”

Earlier, the US State Department had claimed that Panama had agreed not to charge US government ships any tolls for passing through the canal. The department’s statement on Wednesday also mentioned that the toll exemption would save the US government “millions of dollars per year.”

US Secretary of State Marco Rubio had threatened measures during his visit to Panama on Sunday if the Latin American country did not make changes to the operation of the Panama Canal.

Rubio claimed that Panama’s government had made concessions during their Sunday talks. According to his own account, he argued that it was unfair that the US had the right to defend the important canal, but was still required to pay for its use.

President Trump had previously threatened to bring the Panama Canal back under US control, with Washington particularly criticizing the tolls for US military ships that pass through the canal.