Panama Canal Authority Addresses U.S. Concerns, Stands by Treaty Obligations

The Panama Canal Authority (ACP) has reaffirmed its unwavering compliance with the “Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal,” dismissing allegations from U.S. officials.

Ilya Espino de Marotta, Deputy Administrator of the ACP, stated during a business meeting in Panama City that the canal operates strictly under treaty guidelines, ensuring equal access for vessels from all nations.

Espino de Marotta addressed claims raised by U.S. politicians, including Senator Ted Cruz, who allege treaty violations and excessive toll increases. She emphasized that the ACP is a non-political entity focused solely on operational efficiency.

“Our role is operational,” she said, noting that warships have paid transit fees since before Panama assumed full control of the canal on December 31, 1999.

The Neutrality Treaty, signed in 1977 as part of the Torrijos-Carter agreements, guarantees the canal’s neutrality and accessibility in both peace and war. It also grants Panama full operational control while prohibiting foreign military presence or influence.

Despite this, U.S. officials have expressed concerns over Chinese involvement in Panamanian port operations and infrastructure projects near the canal.

Economic Backbone Amid Challenges and Geopolitical Shifts

The canal’s economic significance cannot be overstated. It contributes 7.7% to Panama’s GDP and generates 23.6% of government revenue through dividends and other payments.

In 2024 alone, it added $5 billion to national coffers. The waterway facilitates the transit of approximately 13,000 vessels annually, accounting for 5% of global maritime trade.

However, challenges persist. Climate change-induced droughts have strained water resources critical for canal operations, prompting the ACP to invest in a $1.6 billion reservoir project expected to take six years to complete.

Additionally, rising tolls—up by as much as 200% for some vessel types over recent years—have sparked international criticism. Despite external pressures, Panama remains steadfast in its sovereignty over the canal.

President José Raúl Mulino recently announced Panama’s withdrawal from China’s Belt and Road Initiative. This decision signals a shift in foreign policy amid growing geopolitical tensions.

As debates over tolls and foreign influence continue, Espino de Marotta reiterated Panama’s commitment to transparency and neutrality. “We are fulfilling 100% of our obligations under the treaty,” she affirmed, underscoring the nation’s resolve to maintain control over this vital global trade artery.