Panama's president denies making deal regarding free transit of U.S. ships

Beginning with the diplomatic dispute, between the U.S. and Panama, over usage fees for the Panama Canal.

Washington on Thursday, reversed claims made the day before, that an agreement had been reached, to allow passage through the Canal, free of charge.

U.S. Secretary of State Marco Rubio said Panama is "expected" to waive transit fees for U.S. government vessels, acknowledging a "process of laws and procedures" that Panama would need to navigate first.

The U.S. State Department announced Wednesday that a deal had been made that would save the U.S. millions of dollars annually.

However, Panama's President Jose Raul Mulino refuted the claim, stating that no such agreement exists and emphasized that neither he nor the constitution have the authority to alter canal fees.

He said the U.S. assertion was "intolerable" and instructed Panama's ambassador in Washington to confront the statement.

The Panama Canal Authority, responsible for setting the transit tolls, also denied any changes to fee structures.