Washington Says US Government Ships Won't Pay Fees For Panama Canal

WASHINGTON, Feb 6 (Bernama-dpa) -- US government ships will no longer pay to transit through the Panama Canal, the US Department of State said on Wednesday, following fierce criticism from Washington over the administration of the waterway, reported German news agency dpa.

"The government of Panama has agreed to no longer charge fees for US government vessels to transit the Panama Canal," the Department of State said in a post on social media platform X. "This saves the US government millions of dollars a year."

There was initially no comment from the Panamanian side.

In his inauguration speech on January 20, US President Donald Trump laid claim to the Panama Canal. He has since bluntly stated on several occasions that the US should have checks on the important waterway, claims that his Panamanian counterpart, José Raúl Mulino, has firmly rejected.

Trump also claims that China is operating the important waterway in Central America. Both Panama and China have rejected the allegations. 

However, Panama has been under considerable pressure to make concessions. Trump did not rule out military action.

The 82-kilometre canal connects the Atlantic with the Pacific in Central America. It was built at the beginning of the 20th century by the engineering corps of the US Army.

On December 31, 1999, the US handed over the canal administration to Panama. The transaction was negotiated by the recently deceased Democratic US president Jimmy Carter.

-- BERNAMA-dpa