Panama has denied making changes to allow US government vessels to transit the Panama Canal for free, following White House claims it had agreed to such a move.

The State Department said in a statement on X that its government vessels “can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year”.

In a statement in response to the State Department, the Panama Canal Authority (ACP) said: “The Panama Canal Authority, which is empowered to set tolls and other fees for transiting the canal, reports that it has not made any adjustments to them”.

US President Donald Trump’s administration has repeatedly voiced its desire to retake the key trade corridor, an argument that has sparked backlash in Panama.

Secretary of State Marco Rubio, who has been on a visit to Latin American countries this week, demanded that Panama make “immediate changes” to what he calls the “influence and control” of China over the Panama Canal.

Rubio, who is America’s top diplomat, said Panama must act or the US would take necessary measures to protect its rights under a treaty between the two countries.

Source: BBC