Panama Canal denies US claim of free passage for government vessels

.

The Panama Canal Authority has denied the US State Department’s claim that a deal has been reached allowing United States government vessels to cross the canal without paying fees, likely ratcheting up tensions after President Donald Trump threatened to take back control of the water channel that connects the Pacific and Atlantic oceans.

In a statement on Wednesday, the canal authority, an autonomous agency overseen by the Panamanian government, said that it had not made any changes to passage fees or rights to cross the canal, adding its statement was directly in response to the US’s claims.

“The Panama Canal Authority, which is empowered to set tolls and other fees for transiting the canal, reports that it has not made any adjustments to them,” it said.

But it stated that it was still ready to hold a dialogue with US authorities “regarding the transit of wartime vessels from said country”.

Panama has become a focal point of the Trump administration as the president has accused the Central American country of charging excessive rates to use its trade passage, which is one of the world’s busiest.