Panama President Slams U.S. Over False Canal Claims

Panama’s President Jose Raul Mulino criticized the U.S. on Thursday, accusing it of spreading “lies and falsehoods” after the State Department claimed U.S. government vessels could transit the Panama Canal without paying. The remarks escalate tensions as Washington pushes for closer military cooperation and counters alleged Chinese influence over the canal.

Mulino later announced he would speak with U.S. President Donald Trump on Friday after Trump declared the U.S. was “taking back” the canal, accusing Panama of allowing China undue control.

The Panama Canal Authority rejected the U.S. claim that it had waived toll fees for U.S. government ships, emphasizing that all vessels must pay. While the 1977 neutrality treaty grants U.S. military vessels priority passage, tolls remain mandatory. Trump has criticized Panama’s fees as excessive.

Mulino denounced the U.S. statement, calling it “intolerable” and instructing Panama’s ambassador in Washington to take “firm steps” to refute the claims. Meanwhile, U.S. Secretary of State Marco Rubio defended the U.S. position, arguing it was “absurd” for the Navy to pay fees to use a canal it is “obligated to protect.”

Rubio, who met Mulino earlier in the week, welcomed Panama’s decision to exit China’s Belt and Road Initiative, calling it a “great step forward.” However, Mulino clarified the move was not at the U.S.’s request but part of a broader review of Panama’s relationship with China.

As diplomatic tensions rise, Panama remains firm in maintaining control over its strategic waterway, rejecting external pressures from both the U.S. and China.