Ships belonging to the US government can now pass through the Panama Canal free of charge, the State Department said, BTA reported.
"The government of Panama has agreed to no longer charge transit fees to US government ships for passage through the Panama Canal," the State Department wrote on the social network "Ex". The announcement said it would save the budget millions of dollars each year.
Secretary of State Marco Rubio met with Panamanian President Jose Raul Mulino on Saturday during his tour of Central America.
In recent weeks, the Donald Trump administration has focused its attention on Panama, with the US president accusing the country of charging too high transit fees, Reuters notes.