State Department announced that U.S. government vessels can now transit the Panama Canal without fees

The U.S. Department of State announced on Wednesday that American government vessels can now transit the Panama Canal without incurring any fees.

“The government of Panama has agreed to eliminate fees for U.S. government vessels transiting the Panama Canal,” the department stated in a post on X. This agreement is expected to save the U.S. government millions of dollars annually. The Panama Canal Authority has not yet responded to requests for comment.

U.S. Secretary of State Marco Rubio met with Panama’s President Jose Raul Mulino on Sunday during a visit to Central America. The Trump administration has focused on Panama, with President Donald Trump alleging that the country has imposed excessive charges for the use of the canal.

“If the moral and legal principles of this generous act are not upheld, we will demand the complete and unconditional return of the Panama Canal to the United States,” Trump stated last month.

Mulino has dismissed Trump’s assertion that the U.S. could reclaim control of the canal, which was primarily constructed by the U.S. and was administered by it for many years. However, the U.S. and Panama signed two agreements in 1977 that facilitated the canal’s transition to full Panamanian control, which was completed in 1999 after a period of joint administration.