PANAMA CITY — President José Raúl Mulino of Panama firmly refuted claims made by the U.S. State Department regarding a supposed agreement that would allow U.S. warships to traverse the Panama Canal without incurring any fees. On Thursday, Mulino expressed surprise at the assertion made by the U.S., stating that during his conversation with U.S. Secretary of Defense Pete Hegseth, he clarified his inability to set or waive the transit fees for the canal. This led him to question the validity of the State Department’s earlier announcement.

In his weekly press briefing, Mulino emphatically rejected the U.S. statement, emphasizing the importance of accurate communication in foreign policy. He mentioned that he had instructed Panama’s ambassador in Washington to contest the claims made by the U.S. officials. The assertion made by the U.S. State Department stated that U.S. government vessels would be able to transit the canal without charge, which they claimed would lead to significant savings for the U.S. government each year. However, no immediate response was forthcoming from the State Department regarding Mulino’s statements.

Furthermore, the Panama Canal Authority released a brief statement later on Wednesday, confirming that no changes had been made to the existing fee structures for canal transit. Mulino expressed his astonishment at the U.S. declaring an supposedly institutional decision based on inaccurately framed facts. He labeled such a communication intolerable, given its potential implications.

This exchange comes on the heels of a meeting between U.S. Secretary of State Marco Rubio and President Mulino, where they discussed the importance of the canal. Rubio conveyed a message from President Donald Trump regarding concerns over China’s rising influence in the region surrounding the canal, which he suggested might breach the treaty that facilitated the transfer of the canal to Panama in 1999. This treaty ensures the permanent neutrality of the canal, constructed by the U.S.

While the administrators of the Panama Canal indicated their willingness to consider prioritizing U.S. warships for transit, they did not explicitly refer to waiving fees. Mulino made it clear that the constitutional stipulations in Panama, as well as the laws governing the Canal Authority, prevent any such fee waivers, describing these regulations as a “constitutional limitation.”