US warships will have free passage through the Panama Canal in another concession to President Donald Trump by the Central American country.
Panamanian President Jose Raul Mulino assured Trump’s secretary of state, Marco Rubio, that US Navy vessels would not pay a toll to transit the waterway, a US official told Bloomberg.
The Panama Canal Authority used more qualified language after Rubio visited its facilities during his first foreign trip since becoming the US’ chief diplomat.
“The Panama Canal Authority conveyed to secretary Rubio its intention to work with the US Navy to optimise transit priority of US Navy vessels through the Panama Canal,” the agency said.
TradeWinds reported earlier on Monday that Panama agreed it would not renew a 2017 deal that allowed it to take advantage of China’s Belt and Road Initiative.
The concessions emerged even as Trump reiterated his threats on Sunday to take over the canal.
“China is running the Panama Canal that was not given to China, that was given to Panama foolishly, but they violated the agreement, and we’re going to take it back, or something very powerful is going to happen,” Trump told reporters on the tarmac of Joint Base Andrews in Maryland.
Panamanian authorities have denied that the Chinese control the canal.
On Monday, Rubio hailed Panama’s distancing itself from Beijing.
“Yesterday’s announcement by President Jose Raul Mulino that Panama will allow its participation in the [Chinese Communist Party’s] Belt and Road Initiative to expire is a great step forward for US-Panama relations, a free Panama Canal and another example of @POTUS’s leadership to protect our national security and deliver prosperity for the American people,” Rubio wrote on X, referring to Trump by his handle on the platform.
