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US President Barack Obama has told Latin American leaders that the days when his country could freely interfere in regional affairs are past, the BBC reported.

He was speaking just before the seventh Summit of the Americas in Panama City.

Mr Obama and Cuban leader Raul Castro shook hands as the opening ceremony began, their first encounter since a December detente.

But their historic formal talks due on Saturday could be overshadowed by tensions between Venezuela and the US.

Mr Obama told a forum of civil society leaders in Panama City that "the days in which our agenda in this hemisphere presumed that the United States could meddle with impunity, those days are past."

At past Summits of the Americas, which bring together the leaders of North, Central and South America, the US has come in for criticism for its embargo against Cuba and its objection to having Cuba participate in the gatherings.

This seventh summit is the first which Cuba will attend and much of the attention will be focused on the body language between the former foes.

Barack Obama and Raul Castro are due to meet again later on Saturday. It will be the first formal encounter between the leaders of the US and Communist-run Cuba in more than five decades.

Before the summit began, the US president stressed that he hoped the thaw in relations would improve the lives of the Cuban people.

"Not because it's imposed by us, the United States, but through the talent and ingenuity and aspiration and the conversation among Cubans, among all walks of life. So they can decide what is the best course of prosperity."

Later, Mr Obama and Mr Castro joined representatives from 35 nations for the summit's inauguration ceremony.

A marching band and children in national dress of the participating countries waved flags as the summit opened to applause.