In a key concession to Washington, Panama President Jose Raul Mulino on Thursday (Feb 6) confirmed that Panama had pulled out of China's massive Belt and Road Initiative (BRI) infrastructure programme.

Panama denied a claim made by the State Department on Wednesday that the Central American nation had agreed to no longer charge fees for US government ships to transit the country’s famous canal.

US government ships will no longer pay to transit through the Panama Canal, the US Department of State said on Wednesday, following fierce criticism from Washington over the administration of the waterway.

The State Department surprised Panama with the announcement that U.S. government ships would pass through the Panama Canal for free. In a Wednesday X post, the State Department announced that U.S. government vessels could now transit the Panama Canal without paying fees,