Panama perhaps should acquire a little territory (7)
I believe the answer is:
habitat
'territory' is the definition.
(I've seen this before)
I don't understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for habitat that I've seen before include "Usual abode" , "Where something's usually found" , "Natural home of an organism" , "Natural environment, plant or animal" , "Domain" .)