PANAMA CITY - The Panama Canal Authority denied reports on Wednesday that it would allow US government vessels to transit the canal for free, clarifying that no changes have been made to tolls or fees.

"In response to a publication issued by the US Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, announces that it has not made any adjustments to these fees," the agency said in a statement.

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"With absolute responsibility, the Panama Canal Authority, as it has indicated, is willing to establish a dialogue with the pertinent officials of the United States with respect to the transit of US warships," the statement added.

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The US Department of State stated on Wednesday that Panama agreed to waive fees for US government vessels.

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"US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year," the department said in a post on social media X.