BREAKING: US government ships able to transit Panama Canal without charge fees

The US State Department under Secretary of State Marco Rubio has announced on Wednesday that “U.S. government vessels can now transit the Panama Canal without charge fees.” This, the State Department notes, will save the US “millions of dollars a year.” Rubio had warned Panama to curb Chinese influence over the Canal.

This is a change in the recently implemented policy of Panama which required increased charge fees of all ships passing through the Canal. After President Donald Trump took office in January, he began suggesting that if the fees were not lifted the US might have to take control of the Canal. Ocean carriers had been planning to launch surcharges for all ships going through the Canal, which has implemented a booking reservation system.

Panama vowed to retain control of the Canal despite the warnings from Trump. The US built the Canal under President Teddy Roosevelt an enormous cost of both resources and American lives. “In the name of the Republic of Panama and its people, I categorically reject the words outlined by President Donald Trump regarding Panama and its Canal in his inaugural speech,” Panamanian President José Raúl Mulino said in response to Trump’s threat. 

He had also said, ahead of Trump’s taking office, that the US was not being charged inflated rates to transport ships through the Canal, which is comprised of a series of locks to make it possible for ships to cross between the Atlantic and Pacific Oceans. 

That threat came during Trump’s inaugural speech. “We have been treated very badly from this foolish gift that should have never been made,” Trump said, “and Panama’s promise to us has been broken. The purpose of our deal and the spirit of our treaty has been totally violated. American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the United States Navy, and above all, China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back.”

Many cargo ships traverse the Canal every day, delivering goods to the United States. The purpose of the Canal was to facilitate the travel of military and commercial ships. Panama signed treaties with President Jimmy Carter in 1977 to phase out US control of the Canal, and President Bill Clinton sealed the deal in 1999, giving full control to Panama.