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.

WASHINGTON/PANAMA CITY - The Panama Canal Authority on Wednesday 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.

Panama President José Raúl Mulino has accused the US of spreading "lies and falsehoods" after the US State Department claimed American government vessels were no longer required to pay a fee to transit through the Panama Canal.