The United States Department of State on Wednesday said American government vessels can now transit the Panama Canal without charge fees.
The Department said this in a tweet via its X account.
“The government of Panama has agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal,”It tweeted.
It said the agreement will save the U.S. government millions of dollars each years.
This is coming after U.S. Secretary of State Marco Rubio met with Panama’s President Jose Raul Mulino on Sunday during a trip to Central America.
Panama has become a focal point of the President Donald Trump administration.
Trump had accused the Central American country of charging excessive rates to use its passage.
“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question,” Trump had said in January.
US govt no longer pay fees for vessels transiting through Panama Canal
