The Panamanian government on Wednesday slapped down claims being made by the Trump administration that it had agreed to grant free passage for United States military ships through the Panama Canal.
The Wall Street Journal reports that Panama is denying the State Department’s claim that American ships would have access to the canal “without charge fees, saving the U.S. government millions of dollars a year.”
The issue, according to the Journal, is that giving American military ships a free pass through the canal would likely violate treaty commitments that the government made in the past.
Panama still needs to find a way to allow free passage without breaching a neutrality clause banning preferential treatment for any country, people familiar with the discussions said,” reports the Journal. “The canal’s administrator, Ricaurte Vásquez Morales, told The Wall Street Journal last month that breaching the neutrality treaty would lead to chaos.”
