Panama's leader rejects State Department claim of deal for U.S. warships to traverse Panama Canal for free

Panama City — Panamanian President José Raúl Mulino on Thursday denied the U.S. State Department's claim that his country had reached a deal to allow U.S. warships to transit the Panama Canal for free.

Mulino said he had told U.S. Secretary of Defense 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 U.S. 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.