Panamanian President José Raúl Mulino on Thursday denied the U.S. State Department’s claim that his country had reached a deal allowing U.S. warships to transit the Panama Canal for free. Mulino said he had told U.

Panama's president says the State Department's claim of an agreement granting U.S. warships free canal passage was "based on a falsity. And that's intolerable."

US Secretary of State Marco Rubio has walked back the assertion of the State Department that Panama “has agreed to no longer charge fees” to US government vessels transiting the Panama Canal after outcry from the Panamanian government.