A new diplomatic controversy has erupted between the United States and Panama over the Panama Canal, after the Panamanian government categorically denied a claim made by the US State Department that US government vessels can now transit the strategic waterway free of charge. The dispute comes amid heightened tensions regarding US concerns over China’s influence in the region, as well as comments made by former President Donald Trump about “taking back” the canal.

The disagreement began when the US State Department posted a statement on X (formerly Twitter), asserting that Panama had agreed to waive fees for US government ships navigating the canal.

“US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year,” the statement read, alongside an image of a naval vessel entering the locks of the canal.

However, the Panama Canal Authority (PCA) quickly issued a statement contradicting the US claim, emphasizing that no such agreement had been made.

“In response to a publication released by the United States Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, reports that it has not made any adjustments to them,” the PCA said, adding that it remained open to dialogue with the US government on the issue.

The Panamanian government also underscored that over the past 26 years, the United States has paid only $25.4 million in tolls for........

© Blitz