The Panama Canal Authority has categorically denied assertions made by the U.S. State Department that the country had agreed to allow U.S. government vessels to transit the canal without paying tolls or fees.

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.

Panama President José Raúl Mulino has rejected the U.S. State Department’s claim that his country had reached a deal allowing U.S. warships to transit the Panama Canal for free.