WASHINGTON/PANAMA CITY, Feb 5 (Reuters) - The Panama Canal Authority on Wednesday refuted the U.S. State Department's assertion that U.S. government vessels would be granted passage through the canal without fees, potentially escalating tensions following President Donald Trump's threatened takeover of the route.
The autonomous Panama Canal Authority, under Panamanian government oversight, stated that there have been no modifications to the fee structure or rights concerning canal crossings, directly addressing the U.S. claims.
Contrary to the U.S. State Department's earlier announcement that Panama had agreed to waive tolls for U.S. government vessels, the canal authority clarified that it remains unchanged. This purported agreement was said to save the U.S. millions annually.
We are prepared to engage in discussions with relevant U.S. officials concerning the transit of U.S. wartime vessels, the canal authority responded.
Panama has been in the spotlight as President Trump accuses the nation of imposing excessive tariffs on the canal's usage, a crucial global trade route.
If the principles, both moral and legal, of this generous offer are not upheld, then we will demand the full and unconditional return of the Panama Canal, Trump declared last month.
Trump has also alleged that Panama handed control of the canal to China, an assertion denied by both Panama and China.
U.S. Secretary of State Marco Rubio visited Central America, with Mulino pledging to withdraw from China's Belt and Road Initiative.
Mulino has rebuffed Trump's warning that the U.S. could claim back the canal, which the U.S. predominately constructed and managed for many years.
Following agreements signed in 1977, the canal's transition back to full Panamanian authority occurred in 1999, after a period of shared administration.