The US State Department announced that Panama will no longer charge fees for US government vessels using the Panama Canal. This decision is expected to save the US government millions of dollars annually. The announcement followed US Secretary of State Marco Rubio's visit to Panama on February 1, his first since taking office.
President Donald Trump had previously criticized Panama for high fees on US ships, calling them "ridiculous" on his Truth Social platform. The US, which built the canal in 1914, handed over full control to Panama in 1999.
During his visit, Rubio expressed concerns about China's influence over the canal, calling it "unacceptable." He warned that the US might take necessary actions if changes were not made. Rubio discussed these issues with Panamanian President Jose Raul Mulino and Foreign Minister Javier Martinez.
State Department spokesperson Tammy Bruce stated that President Trump views China's control as a threat and emphasized the need for immediate changes to protect US rights under the Treaty of Permanent Neutrality and Operation of the Panama Canal.
Panama is a country in Central America. It is famous for the Panama Canal, a man-made waterway that connects the Atlantic and Pacific Oceans.
To waive fees means to not charge money that is usually required. In this case, Panama is not charging the US for using the canal.
US ships are boats or vessels that belong to the United States government. They use the Panama Canal to travel between oceans.
The Panama Canal is a large waterway in Panama that allows ships to travel between the Atlantic and Pacific Oceans without going around South America.
Marco Rubio is a US politician who was serving as the Secretary of State at the time of this event. He visited Panama to discuss important matters.
China's influence refers to the power or impact that China might have over the Panama Canal. This is a concern for the US because the canal is important for global trade.
President Trump was the President of the United States from 2017 to 2021. He had opinions about the fees Panama charged for using the canal.
In 1999, Panama took full control of the Panama Canal from the United States. Before that, the US managed the canal since it was built in 1914.
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