Panama’s President José Raúl Mulino firmly rejected claims from the U.S. State Department that American government vessels would be allowed to transit the Panama Canal without paying fees.
“I was very surprised by the statement of the State Department because they are making important statements based on a falsehood, and that is simply intolerable,” Mulino stated during a press conference on Thursday. He emphasized that bilateral relations between Panama and the United States should not be built on “lies and falsehoods.”
His remarks came in response to a State Department announcement on Wednesday, which asserted that U.S. government ships would be exempt from fees when passing through the canal. However, the Panama Canal Authority quickly refuted the claim, issuing a statement that it had not altered its tolls or other charges.
“With absolute responsibility, the Panama Canal Authority is willing to engage in dialogue with the relevant U.S. officials regarding the transit of American warships,” the authority’s statement read.
Mulino cited Article 76 of Panama’s Canal law, which prohibits the government or the canal’s authority from waiving tolls, fees, or other service charges. He further explained that only the board of directors of the canal’s authority has the power to set toll rates, in accordance with the Panamanian Constitution.
“I can do what I can do, but I am not going to break the Constitution under the pretext of anything or anyone,” Mulino stated. He acknowledged the internal political issues in the U.S. but asserted that Panama has its own challenges and that he would not violate democratic principles to accommodate external pressures.
In response to the situation, Mulino directed Panama’s Ambassador to the U.S., José Miguel Alemán, to take action regarding the State Department’s assertions. Other Panamanian embassies were also informed of the canal authority’s official position.
Mulino referenced a phone conversation he had with U.S. Defense Secretary Pete Hegseth on Wednesday, during which they discussed migration and the constitutional limitations on altering canal tolls. Three Panamanian ministers were present during the discussion.
The Panamanian president reiterated his disapproval of the State Department’s statement but described his conversation with Secretary Hegseth as productive. “There are many more things that unite us, many more shared interests, than some tolls for the Canal that do not even reach $10 million for a country like the United States,” he said.
Mulino also noted that he had not yet received confirmation regarding a scheduled phone call with U.S. President Donald Trump on Friday.
