The U.S. State Department recently announced a significant development in its relations with Panama, revealing a new agreement that will waive charge fees for U.S. government vessels transiting the Panama Canal. This move is expected to result in substantial cost savings for the U.S. government, amounting to millions of dollars annually.
President José Raúl Mulino of Panama made a commitment to terminate a crucial development deal with China following discussions with Secretary of State Marco Rubio. The decision came after concerns were raised about the increasing influence of the Chinese Communist Party in the Panama Canal region.
President Donald Trump has been vocal about his disapproval of the high fees imposed on U.S. ships using the canal. He has even proposed the idea of repurchasing the canal, which was originally constructed by the U.S. and later transferred to Panama during the Carter administration.
A proposed legislation known as the 'Panama Canal Repurchase Act' aims to grant President Trump and Senator Rubio the authority to engage in negotiations with Panama for the potential repurchase of the canal.
Highlighting the strategic importance of the Panama Canal, the State Department revealed that over 70 percent of all vessels passing through the canal are either heading to or departing from U.S. ports. Additionally, the canal serves as a crucial transit point for U.S. Coast Guard and Department of Defense vessels.
Ships opting not to use the Panama Canal would have to navigate an additional 8,000 miles around South America, underscoring the significance of the canal as a time-saving route for maritime traffic.
Source reached out to the State Department for comments on the recent developments but had not received a response as of Wednesday night.
