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Thursday, February 6, 2025

US govt no longer pay fees for vessels plying through Panama Canal

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That is indeed a significant shift in the relationship between the U.S. and Panama! The Panama Canal has long been a key strategic asset for both countries, and this agreement, allowing U.S. government vessels to pass through without fees, marks an important moment in the post-Canal Zone era. Historically, the U.S. had control over the canal until it was handed back to Panama in 1999, but the canal’s importance has remained central to global trade and U.S. interests.

Secretary of State Marco Rubio and President Mulino’s discussions seem to indicate a kind of recalibration in how the two countries engage on this issue, especially given the backdrop of President Trump’s earlier comments. His suggestion that Panama should respect the moral and legal principles behind the agreement—or else face the possibility of the U.S. demanding the full return of the canal—adds an interesting layer to the negotiations.

This deal could also have broader implications for U.S.-Latin American relations. It might set a precedent for future negotiations between the U.S. and other countries in the region, as it highlights the strategic leverage the U.S. holds due to its historical involvement with the canal. However, it also opens up questions about Panama’s long-term sovereignty and how other countries will view such agreements.

How do you think this will impact both countries in the long run? Will it strengthen ties, or might it sow some tension in the region?

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