Panama has rejected claims made by the White House that it has changed its policies to let US government vessels pass through the Panama Canal for free.
The US State Department stated on X (formerly Twitter) that US government could now use the canal without paying fees, which would save the US millions of dollars each year.
Responding to the comments, the Panama Canal Authority (ACP) said it is "empowered to set tolls and other fees for transiting the canal," adding that it "has has not made any adjustments to them,” as per BBC.
US President Donald Trump has repeatedly expressed his desire for the US to regain control of the Panama Canal.
The Panama Canal, a vital trade route is a 51-mile (82 km) waterway that serves as a main connection between the Atlantic and Pacific Oceans.
Secretary of State Marco Rubio, who is currently visiting Latin America has urged Panama to take :immediate action” to reduce what he claims is China’s influence and control over the canal.
As per the outlet, he warned that if Panama does not take action regarding the Panama Canal, the US will take necessary steps to protect its rights under an existing treaty between the two countries.
During his visit to Panama, Rubio met Panama's President José Raúl Mulino, as well as the canal's administrator Ricaurte Vásquez Morales.
Following the meeting, the ACP stated that it had expressed willingness to cooperate with the US Navy and improve transit priority for US vessels.
Meanwhile, in a separate statement on Wednesday, the ACP reaffirmed its commitment to ongoing discussions with Washington.
