A Fight for Control: Panama's President Responds on US Ships and Canal Fees

Thu Feb 06 2025
This - Panama's President, let's just call him José, found himself in hot water recently. You know, Jose is the big boss of Panama. He and a U. S. Cabinet member, let's call him Marco, had a chat and some big decisions were on the table. The biggest was whether U. S ships should get a free pass to cross Panama's famous canal. "Why is this a big deal? " Well, Panama Canal has a very important job. It cuts a huge chunk of travel time for ships across the world. Imagine if you've got a box of toys on one side of the world but you want your friend on the other side to have it. The Canal helps ships go the shortest distance. So why does this talk have everyone in a twist? There's a big concern about China's growing presence in the area. A big concern for Marco was that Joe says China has too much say. The problem is that it violates a past agreement. Just two months ago the same cabinet member, Marco, met with José and others from the canal management team. They were given a tour. Marco's boss - Joe, said that China's influence around the canal is a problem. Marco's message was that the relationship between Panama and China goes against the agreement. This treaty was made decades ago and was meant to keep the canal its own place José was quick to respond, though. He noted that the Panama laws don't let them waive fees, or give discounts to anyone. Just like you can’t go into a store and ask if you can pay every other visit. If the store owner lets you, Likewise they can't give discounts or exemptions to anyone. Understand? They have to follow the rules. The Panama Canal Authority stated that there's no change in the fees. Marco and José discussed the plan for the canal. Chief among these concerns was to make sure that all those big U. S. ships get priority in passing through the Canal. Though, that has nothing to do with cutting fees. They just want to go first. But they need to pay. There are a few more twists to this story. First, there was a recent statement made by the U. S. government, verse Joe saying that U. S. ships can cross the canal without paying the fees. Remember, these ships are already funded by Panama's hard-earned money. Discovering that the fees would be waived for the US ships just raised eyebrows in Panama about the arrangement. An official rep from the Panama Canal Authority issued a competitive statement challenging claims that new pricing strategies were implemented for US boats. On the day of Marco’s visit, Panama’s Canal officials said that they will entertain discussions if there is a need for US boats to be given priority for crossing the Canal. Though, it does not necessarily mean offering freebies. A big detail was a conversation between the U. S. President - Joe and Marco - about the increasing influence of China and how it's violating the neutrality. The Canal is a central trade route, and countries from all over the world rely on its safe passage for their ships. Everything is paid for as per the rules. Joe on the other hand it's saying everyone should be paying for the Canal - even their own ships. The recent debacle was surprising and did not sit well with officials.