US recognizes Panama's sovereignty over canal, Panama says after talks

PANAMA CITY (Reuters) -Panama said on Wednesday the United States recognized its sovereignty over the Panama Canal, despite tough rhetoric from Washington, as the two nations announced agreements to deepen U.S. military training in the Central American nation.

U.S. Defense Secretary Pete Hegseth, in the first visit by a Pentagon chief to Panama in decades, said he sees the canal as key terrain that Panama would secure together with the U.S. - and not with China.

"We are helping to take back the Panama Canal from communist Chinese influence," Hegseth told a press briefing in Panama City. The Panamanian government has strongly rejected U.S. allegations the key waterway is controlled by China.

But current and former U.S. officials and experts say the United States has legitimate security concerns about China's presence in Panama, including that ports and other infrastructure held by Chinese firms could be used for espionage.

During Hegseth's visit, the U.S. and Panama issued joint statements about deepening security cooperation. But the English-language version published by the Pentagon did not include a sentence that was in the Spanish-language version published by Panama that spoke about Panama's sovereignty over the canal.

The sentence read: "In addition, Secretary Hegseth recognized the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas."

Asked whether he recognized Panama's sovereignty, Hegseth said: "We certainly understand that the Panama Canal is in Panama, and protecting Panamanian sovereignty from malign influence is important."

"Which is why when President Trump says we're taking back the Panama Canal from Chinese influence that involves partnership with the United States and Panama," Hegseth said.

"And we're grateful that they've welcomed U.S. troops on Panamanian soil by invitation through rotational, joint exercises."

Panama's Minister for Public Security Frank Abrego said Panama would not allow permanent military bases.

"Secretary Hegseth, in the meeting we had in private recognized the sovereignty of Panama over the Panama Canal," he told reporters.

(Reporting by Phil Stewart; Writing by Sarah Morland; Editing by Chris Reese and Rod Nickel)