The United States said that its government vessels would be allowed to sail for free through the Panama Canal, following heavy pressure from President Donald Trump.
“US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year,” the State Department said.
It was the first public announcement of promises hinted at by US Secretary of State Marco Rubio, who said that Panama offered concessions during his talks on Sunday.
The Panama Canal Authority denied the US State Department’s claim that US government vessels would be able to cross the canal without paying fees, likely ratcheting up tensions after President Donald Trump threatened to take back control of the crossing.
The canal authority, an autonomous agency overseen by the Panamanian government, said in a statement that it had not made any changes to charge fees or rights to cross the canal, adding its statement was directly in response to the US claims.
“With total responsibility, the Panama Canal Authority, as it has indicated, is willing to establish a dialogue with relevant US officials regarding the transit of wartime vessels from said country,” the canal authority responded.
Since winning the November US election, Trump has refused to rule out the use of force to seize the canal, through which 40% of US container traffic passes.
Trump and Rubio have complained about Chinese investment — including ports on both sides of the canal — and warned that Beijing could close the waterway to the United States in a crisis.
Panama has forcefully denied Trump’s repeated allegations that China has been given a role in operating the canal.
