Panama's José Raúl Mulino announced that his country would not renew its agreement with China's Belt and Road Initiative following a visit from Secretary of State Marco Rubio.

President José Raúl Mulino on Thursday denied a claim by the Trump administration that this Central American country had agreed to eliminate tolls for U.S. government ships using the Panama Canal, in an apparent setback to U.

Panama on Thursday rejected the United States' claim of securing free passage for its government vessels through the Panama Canal, while bowing to US pressure to quit a key Chinese project.The new row between Panama and Washington erupted after the US State Department claimed that Panama had agreed to let American government vessels through the canal for free after talks last weekend between Mulino and Trump's Secretary of State Marco Rubio.

The State Department claimed it had struck a deal that would save the U.S. government “millions of dollars a year.”

Panama President José Raúl Mulino has accused the US of spreading "lies and falsehoods" after the US State Department claimed American government vessels were no longer required to pay a fee to transit through the Panama Canal.

Panama’s President José Raúl Mulino has accused the US of spreading “lies” after the State Department claimed US government vessels no longer had to pay transit fees through the Panama Canal. US Secretary of State Marco Rubio later walked back the claim but called the fees “absurd,