Panamanian President has categorically denied any negotiations for ships to transit the Canal without charge.
Straight Talkin' on Panama Canal's Rules
Here's the lowdown on the Panama Canal's operations, straight from the horse's mouth, or in this case, the President of Panama, José Raúl Mulino.
On a recent Saturday, Mulino set the record straight about the transit of ships through the Panama Canal. According to him, the Neutrality Treaty and the Organic Law of the Panama Canal are the only agreements governing the passage of vessels, and there's no sneaky deal allowing free passage. Any cooperation needs to be established by the Panama Canal Authority (ACP), following current regulations.
In response to a new claim by U.S. President Donald Trump, who opined that U.S. ships, both military and commercial, should be able to navigate freely through the Panama and Suez canals, Mulino was clear: "There is no agreement to the contrary."
Trump's arguments center around the notion that these waterways wouldn't exist without U.S. intervention. He announced that he's requested U.S. Secretary of State Marco Rubio to handle the matter posthaste. But Mulino's stance is as solid as the canal itself: the Neutrality Treaty and the Organic Law are in charge.
Insight: The Neutrality Treaty, signed in 1979 between the United States and Panama, promises the canal's permanent neutrality, ensuring equal access for all nations. The Organic Law of the Canal (Law No. 19 of March 25, 1997) oversee the Panama Canal Authority, which manages the canal's efficient operation, safety, and environmental protection.
The Neutrality Treaty ensures nondiscriminatory access and uses uniform tolls, while the Organic Law outlines operational guidelines, safety standards, and enforcement of sanctions. Additional regulations focus on toll structure, reserved transit slots, and compliance with international sanctions.
You might be wondering why there's so much fuss about the canal. Well, with 5% of global maritime trade passing through it, it's a big deal! The contributions of U.S. warships and submarines represent a minuscule part of the canal's income, with only 0.3% of the traffic corresponding to this type of vessel since 1998, generating a total of $25 million. However, in the fiscal year 2024 alone, the canal boasted revenues close to $5 billion.
So there you have it—the Panama Canal ain't no pushover when it comes to regulations. It's governed by two unwavering laws, and nobody, not even the big cheese in the White House, can sway that.
- Despite U.S. President Donald Trump's assertions, there is no policy-and-legislation allowing free passage for American vessels through the Panama Canal.
- The Panama Canal's operations are regulated by the Neutrality Treaty and the Organic Law of the Panama Canal, ensuring equal access for all nations without any sneaky deals.
- Any cooperation regarding vessel transit through the Panama Canal must be established by the Panama Canal Authority (ACP), following the current regulations outlined in the Organic Law.
- The politics of the Panama Canal's regulations extend beyond the recent claim by President Trump, as one of the world's key shipping routes, generating billions in revenue annually, making it a significant focus of policy-and-legislation and general news.
