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.

"We certainly understand that the Panama Canal is in Panama, and protecting Panamanian sovereignty from malign influence is important", said Secretary of Defense Hegseth when asked about sovereignty

We certainly respect the sovereignty of the Panamanians,” the U.S. defense secretary said before departing the country back to Washington.