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 also gave a public nod to Panamanian sovereignty at the conclusion of the first visit by a Pentagon chief to Panama in decades. Hegseth 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. President Donald Trump's allegations that the key waterway is controlled by China.

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