WASHINGTON

US Secretary of State Marco Rubio moved Thursday to clarify a claim by the State Department that Panama had decided to remove fees for US government vessels transiting the Panama Canal after the Central American country’s president denied making such a deal.

Speaking at a press conference in the Dominican Republic, Rubio explained that the US “expects” Panama to remove the fees but emphasized that the country’s process of laws and procedures must be respected.

“I respect very much that Panama has a process. They're a democratically elected government, they have rules, they have laws. They're going to follow their process, but our expectations remain the same,” he said.

The clarification came after the US State Department issued a statement on X Wednesday claiming that US government vessels could now transit the Panama Canal without charge fees, potentially saving millions of dollars annually. The statement was quickly contested by Panama’s leadership.

"I completely reject that statement yesterday," Panamanian President Jose Raul Mulino said during his weekly press conference, calling it "intolerable" and "falsehood.”