Panama eliminates charge fees for U.S. government vessels to use the canal

The U.S. State Department on Wednesday announced a new deal with the government of Panama that will eliminate charge fees for U.S. government vessels.

“The government of Panama has agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal,” the State Department wrote in an X post Wednesday night.

The new agreement will save the U.S. government millions of dollars a year, officials noted.

U.S. Secretary of State Marco Rubio, right, waves after being welcomed by Panama’s Foreign Minister Javier Martinez-Acha, left, upon his arrival at the presidential palace in Panama City, on Sunday, Feb. 2. Panama is Rubio’s first trip abroad as Secretary of State. (AP/Mark Schiefelbein)

CHINA’S INFLUENCE ON PANAMA CANAL POSES ‘ACUTE RISKS TO US NATIONAL SECURITY,’ SEN CRUZ WARNS

Panama President José Raúl Mulino promised on Sunday to end a key development deal with China after meeting with Secretary of State Marco Rubio. 

During his visit, former Florida Senator Rubio wrote in a post on X that “the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area.” 

President Donald Trump, who has openly criticized the six-figure premiums imposed on U.S. ships traveling through, has suggested repurchasing the canal.

Two cargo ships enter the Miraflores Locks of the Panama Canal in Panama City on Jan. 22. (Martin Bernetti/AFP via Getty Images)

‘TAKING IT BACK’: INTERNAL HOUSE GOP MEMO OUTLINES CASE FOR TRUMP TO Y PANAMA CANAL

It was built over decades by the U.S., but was later handed over to Panama during the Carter administration.

A newly introduced bill called the “Panama Canal Repurchase Act” would give Trump and Rubio the authority to negotiate with Panama to repurchase the canal.

FILE – President Jimmy Carter speaks next to his wife Rosalynn upon arrival to Panama City to sign the Panama Canal Treaty, June 16, 1978.  (AP Photo)

HOUSE REPUBLICANS INTRODUCE BILL TO REPURCHASE PANAMA CANAL AFTER TRUMP RAISES CONCERNS OF CHINESE CONTROL

More than 70 percent of all vessels traveling through the canal are inbound or outbound to U.S. ports, according to the State Department. It is also a key transit point for U.S. Coast Guard and Department of Defense vessels. 

Ships would need to travel 8,000 additional miles around South America to avoid using the pathway.

TOPSHOT – US Secretary of State Marco Rubio boards a plane en route to El Salvador at Panama Pacifico International Airport in Panama City on February 3, 2025. Rubio is in Panama on a two-day official visit.  (MARK SCHIEFELBEIN/Pool AP/AFP via Getty Images)

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Fox News Digital requested comment from the State Department, but did not immediately receive a response as of Wednesday night.

Fox News Digital’s Danielle Wallace and Stepheny Price contributed to this report.