Panama Canal toll controversy: Authority denies U.S. exemption
The Panama Canal Authority denied reports from the U.S. Department of State that American ships would be exempt from tolls. The "Wall Street Journal" reports that Panama only agreed to explore the possibility of such a move.
The Panama Canal Authority firmly denied claims from the U.S. Department of State that it agreed to waive tolls for American warships passing through the canal. According to the "Wall Street Journal," the announcement from Washington surprised Panamanian authorities, who only agreed to consider the possibility.
"In response to a publication issued by the US Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, announces that it has not made any adjustments to these fees," the Panamanian agency managing the canal stated in a release. It added that it "is willing to establish a dialogue with the pertinent officials of the United States with respect to the transit of US warships."
Panama's surprise
This statement was a response to the Wednesday announcement from the Department of State, which stated that American ships would be able to pass through the canal for free, which would save "millions of dollars." This announcement came three days after a meeting between Secretary of State Marco Rubio and Panamanian President Raul Mulino.
According to the "Wall Street Journal," Panama only agreed to explore the possibility of waiving tolls for U.S. ships, emphasizing that this requires legal analysis. Such a move must not violate the canal's neutrality principle and the equal treatment of all countries, as stipulated in the 1977 treaty with the U.S.
Technical limitations
The journal notes that large American warships are unable to pass through the narrow canal, and smaller vessels use it infrequently, about 40 times a year, which constitutes just 0.5% of all passing vessels. The Pentagon estimates that an exemption from fees would save only $13 million (CAD 18 million).
The issue of tolls was one of the points raised by Donald Trump against Panama, claiming that American crews pay more than others. The Panama Canal Authority has rejected these accusations, warning that a preferential tariff for the U.S. could cause "chaos."
