Stop ‘lies and falsehoods’ about canal, says Panama President to US

PANAMA CITY – Panama President Jose Raul Mulino said on Feb 6 that the US was spreading “lies and falsehoods” after the State Department claimed US government vessels would be able to pass through the Panama Canal without paying.

The comments were likely to exacerbate tensions between the two countries after the US cited progress on military cooperation and alleged Chinese influence over the canal.

Later, Mr Mulino added on social media that he would speak to US President Donald Trump on the afternoon of Feb 7.

Panama has been in the White House’s crosshairs since Mr Trump claimed the country’s vital waterway had effectively been taken over by China and vowed the US was “taking it back”. 

Speaking to journalists, Mr Mulino expressed his “absolute rejection” that the two countries’ relations be “based on lies and falsehoods”.

The Panama Canal Authority issued a statement late on Feb 5 rejecting the State Department’s claim that Panama’s government had agreed to no longer charge crossing fees for US government vessels, a move that would save the US millions of dollars a year.

Mr Trump has accused the Central American country of charging excessive rates to use its trade passage, one of the busiest in the world.

US military vessels have priority of passage through the waterway, according to a 1977 neutrality treaty signed when the US agreed to return the canal to Panama. But all ships, regardless of origin, destination or flag, must pay tolls that vary depending on size and type.

“Why are they making an important institutional statement from the entity that governs the foreign policy of the US, under the President of the US, based on a falsehood?” Mr Mulino asked, calling the claim “simply and plainly intolerable”.

Mr Mulino said he asked his ambassador in Washington to take “firm steps” to reject the claims made by the Trump administration.

US Secretary of State Marco Rubio, meanwhile, said at a press conference on Feb 6 that he believed it was “absurd” the US Navy has to pay fees to transit the canal it is obligated to protect under the US-Panama treaty.

Mr Rubio met Mr Mulino earlier in the week during a trip through Central America.

“I’m not confused about Panama,” he said. “We had conversations. I felt they were strong first steps. We have expectations... They’re going to follow their process, but our expectations remain the same.”

After his visit to the country, Mr Rubio welcomed Panama’s decision not to renew participation in China’s Belt and Road Initiative (BRI), a vast global infrastructure plan led by Beijing, calling the move “a great step forward” for bilateral ties.

On Feb 6, Mr Mulino said Panama had formally presented a document to exit the BRI but denied the decision had been made at the request of the US, adding he was taking time to evaluate Panama’s relationship with China and what was best for the nation.

In response, China on Feb 7 said it “regrets” Panama’s decision to withdraw from the BRI.

Chinese Foreign Ministry spokesman Lin Jian urged Panama to “consider the broader bilateral relationship and the long-term interests of both nations” and “resist external interference”.

The achievements of the initiative have benefited people in countries such as Panama, Mr Lin said.

Western critics have accused China of using the BRI to enmesh developing nations in unsustainable debt to exert diplomatic leverage over them or even seize their assets. REUTERS, AFP