Panama denied a claim made by the State Department on Wednesday that the Central American nation had agreed to no longer charge fees for US government ships to transit the country’s famous canal.

The Panama Canal Authority said in a statement late on Wednesday that it had not made any changes to charges or rights to cross the canal, after the U.S. State Department said that U.S. government vessels could transit the crossing without being subject to such fees.

The U.S. State Department on Wednesday announced a new deal with the government of Panama that will eliminate charge fees for U.S. government vessels. "The government of Panama has agreed to no longer charge fees for U.