US claims its vessels will no longer pay to use Panama Canal, but Panamanian authorities say otherwise

Panamanian President Jose Raul Mulino denied the White House announcement that U.S. vessels would stop paying to cross the Panama Canal, calling it an "absolute falsehood" and "intolerable."

Mulino's press conference on Thursday is the second denial by Panamanian authorities. On Wednesday night, Panama Canal authorities issued a statement assuring that they had not agreed to anything and "denying" the State Department:

The words of denial come after the State Department announced in a press release that U.S. government vessels would no longer have to pay any fees for transiting the Panama Canal. In the same, they specified that this arrangement would save the federal government millions of dollars.

Secretary of State Marco Rubio made his first visit abroad to Central America, and one of his destinations was Panama. There, he spoke with President Jose Raul Mulino about the future of the canal. Just a few days later, the news of the change in fees was confirmed.

"U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year," the State Department said on X.

Secretary Rubio's international tour also included Guatemala, El Salvador, Costa Rica and the Dominican Republic.

Panama Canal's multimillion-dollar revenue

The canal was built by the United States between 1904 and 1914, has an extension of 50 miles and connects the Atlantic Ocean with the Pacific. The first ship to pass through it was the S.S. Ancon, and since then it has moved millions of dollars a year thanks to international trade.

In fact, according to the projected budget for 2025, the Panama Canal will receive $5.527 million for "transits." This represents an 18.4% increase compared to fiscal year 2024, which is the same as $858 million.

Of that total projected transit revenue, "some $4,139 million corresponds to toll revenue," which "represents an increase of $577.8 million or 16.2% compared to FY 2024 toll revenue."