PANAMA CITY: Eighteen nations on Friday wrapped up nearly two weeks of military exercises to defend the Panama Canal from mock terrorist attacks and other threats, the US Southern Command chief said.

Sponsored by the United States, Panama and Chile -- the three top users of the canal -- the exercises began annually in 2002 and are key in safeguarding global and regional shipping lanes, General Douglas Fraser told a press conference.

In Panamax 2010 the host country sought UN Security Council authorization for a US-led international military expedition to counter an attack on the canal by an international terrorist group bent on regional destabilization.

Military and police forces from 18 countries took part in the exercises, including Argentina, Brazil, Colombia, Mexico, Peru and Uruguay.

They involved ground and sea operations, humanitarian aid distribution, response to natural catastrophes and fighting drug traffickers.

Built in 1914, the Panama Canal was under US control until 1979, when it came under US-Panamanian administration. In 1999, Panama assumed total authority over the waterway that handles five percent of world shipping trade.

Since its opening, nearly one million ships have passed through the canal`s locks, providing Panama with 700-800 million dollars in revenue each year.

BDST: 1039 HRS, August 28, 2010