Panama's prez denies making deal that US ships can transit canal for free

Panamanian President Jos Ral Mulino on Thursday denied the US State Department's claim that his country had reached a deal allowing US warships to transit the Panama Canal for free.

Mulino said he had told US Secretary of Defence Pete Hegseth on Wednesday that he could neither set the fees to transit the canal nor exempt anyone from them and that he was surprised by the US State Department's statement suggesting otherwise late Wednesday.

I completely reject that statement yesterday, Mulino said during his weekly press conference, adding that he had asked Panama's ambassador in Washington to dispute the State Department's statement.

On Wednesday evening, the US State Department said via X that US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year. The department had no immediate comment Thursday on Mulino's remarks.

The differing versions came just days after US Secretary of State Marco Rubio met with Mulino and canal administrators and visited the critical trade route.

Rubio had carried a message from US President Donald Trump that China's influence at the canal was unacceptable.

Rubio had told Mulino that Trump believed that China's presence in the canal area may violate a treaty that led the United States to turn the waterway over to Panama in 1999. That treaty calls for the permanent neutrality of the American-built canal.

Canal administrators said they were open to discussing giving US warships priority in crossing the canal, but did not say they had considered waiving fees.