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.

US government ships will no longer pay to transit through the Panama Canal, the US Department of State said on Wednesday, following fierce criticism from Washington over the administration of the waterway.

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.