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.

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.

Panama President Jose Raul Mulino said on Thursday the United States was spreading "lies and falsehoods" after the State Department claimed U.S. government vessels would be able to pass the Panama Canal without paying.