Panama Grants Free Canal Passage to U.S. Navy Ships

Panama has agreed to offer free passage for U.S. Navy vessels through the Panama Canal, a decision made during Secretary of State Marco Rubio's visit amidst concerns over China's influence in the region. This move, which could save the U.S. between $2.5 million and $3 million annually, follows President Trump's criticism of Panama's dealings with China. Rubio warned that the current status quo regarding Chinese control over the canal violates a treaty concerning its neutrality and that the U.S. would take necessary measures if changes were not made. In addition, Panama announced it would not renew its participation in China's Belt and Road Initiative, marking a significant shift in its foreign policy. While President Trump has previously threatened to retake control of the canal, Panamanian President José Raúl Mulino downplayed the tensions, asserting that no military action was imminent. This development reflects a broader U.S. push to counter Chinese influence in Latin America.