It has been a half century since U.S. and Cuban leaders have met face-to-face. That all changed Sunday when President Barack Obama and Cuba's Raul Castro met in Panama, The New York Times reported.

Obama sat beside Castro in a small room. They are both in attendance for the Summit of the Americas. Obama called the meeting between the two "historic."

Obama agrees that Cuba and the U.S. will not always agree on everything, but is confident for the future relations between the two countries.

"Our governments will continue to have differences. At the same time, we agreed that we can continue to take steps forward that advance our mutual interests," Obama said at a news conference.

The U.S. President was happy with his meeting with Castro. He called it "candid and fruitful" and plans to continue working on re-establishing diplomatic relations between the two countries. There is also a goal to reopen embassies in Havana and Washington.

Obama understands that relations between the two countries will not be instantly normalized. He would not announce a decision to remove Cuba from the U.S. list of state sponsors of terrorism. He says before that decision is made he wants to study it more.

The best way for the U.S. to address disagreements with Cuba and other countries in the hemisphere is by engaging with them, Obama argued.

"So often, when we insert ourselves in ways that go beyond persuasion, it's counterproductive, it backfires," Obama said.

Castro wants a new beginning with the U.S. even though the two countries have had a "long and complicated history." He said, "We are willing to discuss everything, but we need to be patient - very patient."

Obama's meeting with Castro is an important step to help ease relations with Cuba and end the decades of disputes.

This was the first time in over 20 years that Cuba was allowed to attend the Summit of the Americas. Obama was determined to meet with Castro at the meeting.

"The United States will not be imprisoned by the past -- we're looking to the future. I'm not interested in having battles that frankly started before I was born," Obama said.

Obama says a shift in policy between Cuba and the U.S. would also be a turning point for the entire region.

Castro spoke for over 45 minutes and praised Obama for trying to repair relations between the two countries. Castro said he has read Obama's books and has called him "brave" and "humble" for using his executive powers to lift travel and trade restrictions with Cuba.

Bruno Rodriguez, the Cuban foreign minister has said that the meeting with Obama and Castro has allowed the two countries to learn more about each other.

"We have a better understanding of our common ground, a better idea of our mutual interests" and "better knowledge of the scope and depth of our differences," Rodriguez said.

Panama's President Juan Carlos Varela praised Obama for his efforts.

"President Obama is going to leave a legacy the way he is supporting Hispanics in the United States, and also his new policy for Cuba for us is very important," he said.