Panama's President José Raúl Mulino has strongly criticized the United States for spreading "lies and falsehoods" regarding fees for American government vessels transiting the Panama Canal. His remarks came after the US State Department claimed that such vessels were no longer required to pay transit fees—a statement later retracted by US Secretary of State Marco Rubio.
Rubio, however, maintained that charging American ships was "absurd," citing a treaty that obligates the US to protect the canal if it comes under attack. The dispute adds to growing tensions between Washington and Panama, as US President Donald Trump has repeatedly expressed his desire to regain control of the strategic waterway. Trump has not ruled out using force and is scheduled to speak with Mulino on Friday.
During his tour of Central America, Rubio met with the canal's administrator, Ricaurte Vásquez Morales, alongside President Mulino. He urged Panama to make "immediate changes" regarding what he described as China's growing "influence and control" over the canal. His remarks echoed Trump's inaugural address, in which he claimed that China was operating the canal and vowed to "take it back."
Mulino dismissed these accusations, asserting that the Panama Canal "is and will remain" under Panamanian control.
The US originally built the canal in the early 20th century, but following years of protests, President Jimmy Carter signed a treaty in 1977 to transfer control to Panama gradually. The handover was completed in 1999. Trump, who has criticized the decision as "a big mistake" since returning to office, appears to be pushing for a reversal of that decades-old agreement.
Rubio, who was on a broader tour of the region to discuss migration and drug trafficking, responded to Mulino’s accusations from the Dominican Republic, further escalating the diplomatic standoff.
As tensions rise, the outcome of Trump's upcoming conversation with Mulino may determine the future course of US-Panama relations and the fate of the globally significant waterway.