In a significant policy shift, the U.S. State Department, led by Secretary of State Marco Rubio, has declared that American government vessels will now be able to navigate the Panama Canal without incurring transit fees.
This development, as highlighted by the State Department, is projected to save the United States "millions of dollars a year." Rubio had previously cautioned Panama about the growing Chinese influence over the strategic waterway.
According to The Post Millennial, this announcement marks a departure from Panama's recent policy of imposing increased fees on all ships passing through the Canal. Following President Donald Trump's inauguration, he intimated that the U.S. might consider reclaiming control of the Canal if these fees were not rescinded. Ocean carriers had been contemplating the introduction of surcharges for vessels utilizing the Canal, which now operates under a booking reservation system.
Despite Trump's warnings, Panama remained resolute in its determination to maintain control over the Canal, a monumental engineering feat originally constructed by the U.S. under President Teddy Roosevelt. Panamanian President Jos Ral Mulino firmly responded to Trump's assertions, stating, "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."
President Mulino also clarified that the U.S. was not subjected to inflated rates for shipping through the Canal, which consists of a series of locks enabling passage between the Atlantic and Pacific Oceans. Trump's inaugural address included a stern warning: "We have been treated very badly from this foolish gift that should have never been made," he declared. "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."
The Panama Canal remains a vital artery for global commerce, with numerous cargo ships traversing its waters daily to deliver goods to the United States. Originally designed to facilitate the movement of military and commercial vessels, the Canal's control was gradually transferred to Panama through treaties signed with President Jimmy Carter in 1977, culminating in full Panamanian control under President Bill Clinton in 1999.
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