Panama President Denies U.S. Claims on Canal Toll Exemption: "Unbearable Lies"

José Raúl Mulino Refutes U.S. State Department Statement, Questions Motive Behind False Diplomatic Claims

Panama’s President José Raúl Mulino has strongly denied the recent claim by the U.S. State Department that U.S. government vessels will be exempt from toll fees when passing through the Panama Canal. Speaking to reporters on February 6, Mulino dismissed the assertion as “absolutely false,” accusing the U.S. of spreading misinformation about bilateral agreements. His remarks come amid growing diplomatic tension, as Washington had publicly announced an agreement that Mulino insists does not exist.

According to Reuters, Mulino expressed outrage during a press briefing, stating, “I categorically deny the U.S. claim. It is simply intolerable that a government institution responsible for foreign policy under the U.S. President would issue such an important institutional statement based on lies and falsehoods.” Mulino further revealed that he has instructed Panama’s ambassador to Washington to take firm action in response to the misleading statement.

The controversy erupted after the U.S. State Department posted on social media platform X (formerly Twitter) that the Panamanian government had agreed to waive canal toll fees for U.S. government vessels. On the same day, the U.S. Department of Defense released a statement claiming that Secretary of Defense Pete Hegseth had held a phone conversation with President Mulino, during which both parties reportedly agreed to cooperate on the protection of the Panama Canal.

The Panama Canal, a critical 82-kilometer waterway connecting the Pacific and Atlantic Oceans, has long been a strategic asset in global maritime trade. Constructed by the United States in the early 20th century, control of the canal was officially transferred to Panama in 1999 following the Panama Canal Treaty. Since then, Panama has managed the canal under a permanent neutrality agreement, ensuring its open access to vessels from around the world.

Adding to the diplomatic strain, former U.S. President Donald Trump recently reignited the debate over American interests in the Panama Canal. During his inauguration speech on January 20, Trump criticized the canal’s current operations, stating, “China is now running the Panama Canal, but we never handed it over to China—we handed it over to Panama. It’s time to take it back.” Trump’s comments have fueled speculation about potential U.S. ambitions to regain influence over the canal, further complicating Panama’s efforts to maintain its sovereignty and neutrality.

As tensions rise, the conflicting statements from Panama and the U.S. highlight not only diplomatic friction but also the broader geopolitical significance of the Panama Canal. With global shipping routes becoming increasingly vital amid international trade disputes and strategic military interests, the canal remains a key point of contention between world powers.