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.

Panama President Jose Raul Mulino said on Thursday the U.S. was spreading "lies and falsehoods" after the State Department claimed U.S. government vessels would be able to pass through the Panama Canal without paying.

Panamanian President José Raúl Mulino on Thursday rejected U.S. claims that American warships and boats can transit the Panama Canal without paying a standard fee. In a weekly news conference, Mulino disputed a statement from the State Department on free transit after Secretary of State Marco Rubio’s visit to Panama earlier this week.