The US State Department says the Panamanian government has agreed to no longer charge fees for US government vessels transiting the Panama Canal.
But Panamanian authorities managing the canal deny the claim.

The US department made the announcement in a social media post on Wednesday. It said the agreement will save the US government millions of dollars each year.

But in response, the Panama Canal Authority said in a statement that it has "not made any adjustments" to fees or rights to pass through the canal.
It said it is willing to hold dialogue with the US.

President Donald Trump has repeatedly been talking about the need for the US to take back control of the canal.
Trump has been claiming that China controls the canal and that the fees Panama is charging US naval and commercial vessels to pass through it are excessive.
The United States is the largest user of the canal.

US Secretary of State Marco Rubio conveyed these claims when he met with Panamanian President Jose Raul Mulino on Sunday in Panama. He was on his first overseas visit as America's top diplomat.

In related developments, the US Defense Department says Defense Secretary Pete Hegseth spoke with Panama's Minister of Public Security, Frank Alexis Abrego, on Tuesday.

The department said Hegseth and Abrego reaffirmed their countries' commitment to the defense of the canal and agreed to expand cooperation between the US military and Panama's security forces.