Panama Canal Fee Dispute Sparks Diplomatic Tension

Panamanian President José Raúl Mulino denied US claims of an agreement for free warship transit through the Panama Canal. Mulino clarified that he lacks the authority to waive canal fees, countering a US State Department statement. This dispute arises amidst US concerns over China's influence near the canal.

In a heated diplomatic exchange, Panamanian President José Raúl Mulino on Thursday refuted a US State Department claim that his nation agreed to let US warships transit the Panama Canal for free.

Mulino, speaking to US Secretary of Defence Pete Hegseth, clarified that he is not authorized to set or waive canal transit fees. The US State Department's statement on Wednesday evening contradicted this, suggesting fee-free passages for US vessels.

The disagreement surfaces as US Secretary of State Marco Rubio relayed concerns from President Donald Trump about China's presence in the canal zone, highlighting geopolitical sensitivities over this critical shipping route.