All You Need To Know About The Panama Canal Treaty: Torrijos-Carter Treaties of 1977
The Torrijos-Carter Treaties of 1977 were a pair of treaties signed by the United States and Panama that aimed to resolve longstanding disputes over the control and operation of the Panama Canal. These treaties marked a significant shift in U.S.-Panamanian relations and had profound implications for both countries, as well as for international diplomacy.
Background:
The Panama Canal, completed in 1914, was a vital waterway connecting the Atlantic and Pacific Oceans, significantly reducing travel time for ships. However, the canal was under U.S. control following the construction, with the U.S. maintaining sovereignty over the Panama Canal Zone, a strip of land surrounding the canal. This arrangement was formalized in the Hay-Bunau-Varilla Treaty of 1903, which gave the U.S. perpetual control over the canal and the surrounding zone.
Over the decades, many Panamanians viewed this treaty as an affront to their sovereignty, leading to growing resentment and periodic protests. The issue became a symbol of U.S. imperialism in Latin America, and Panamanian leaders sought to renegotiate the terms of the canal's control.
The Torrijos-Carter Treaties:
In response to these tensions, negotiations between the U.S. and Panama began in the 1960s and continued through the 1970s. The breakthrough came during the administration of U.S. President Jimmy Carter, who made improving relations with Latin America a priority. On September 7, 1977, U.S. President Jimmy Carter and Panamanian leader General Omar Torrijos signed two treaties in Washington, D.C.:
1. The Panama Canal Treaty (also known as the "Neutrality Treaty"):
- This treaty guaranteed the permanent neutrality of the Panama Canal, ensuring that it would remain open to ships of all nations.
- It also allowed the U.S. to defend the canal's neutrality if necessary, even after Panama assumed control.
2. The Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal:
- This treaty outlined the process by which the U.S. would transfer control of the canal to Panama.
- Under its terms, the U.S. agreed to gradually relinquish control of the canal and the Panama Canal Zone, with full Panamanian control scheduled to take effect on December 31, 1999.
- The treaty also provided for joint U.S.-Panamanian operation of the canal during a 22-year transition period (1979–1999).
Key Provisions:
- Transfer of Control: The treaties stipulated that by the end of 1999, Panama would assume full control over the canal and the surrounding zone. The U.S. would no longer have any jurisdiction or military presence in the area.
- Joint Operation: During the transition period (1979–1999), the canal would be operated jointly by the U.S. and Panama, with Panamanians gradually taking on more responsibility.
- Economic Benefits: Panama would receive a larger share of the canal's revenues, which had previously gone mostly to the U.S.
Domestic Reactions:
- In the United States: The treaties faced significant opposition, particularly from conservative politicians who argued that giving up control of the canal would weaken U.S. strategic interests. Critics, including future President Ronald Reagan, claimed that the canal was vital to U.S. national security and should remain under American control. Despite this opposition, the U.S. Senate ratified the treaties in 1978 by a narrow margin (68-32).
- In Panama: The treaties were widely celebrated as a victory for Panamanian sovereignty. General Torrijos, who had led the negotiations, was hailed as a national hero for securing Panama's control over the canal.
Implementation and Legacy:
- Transition Period (1979–1999): Over the next two decades, Panama gradually took over the management and operation of the canal. The U.S. maintained a presence in the region until the final transfer in 1999.
- Full Transfer (1999): On December 31, 1999, the U.S. officially handed over control of the canal to Panama, marking the successful implementation of the treaties.
The Torrijos-Carter Treaties are seen as a landmark in U.S.-Latin American relations, demonstrating the possibility of resolving long-standing disputes through diplomacy. For Panama, the treaties represented a restoration of national sovereignty, while for the U.S., they were part of a broader effort to improve relations with Latin America and address criticisms of American imperialism.
Conclusion:
The Torrijos-Carter Treaties of 1977 were a historic agreement that resolved decades of tension over the Panama Canal. By transferring control of the canal to Panama, the treaties not only addressed Panamanian grievances but also improved U.S. relations with Latin America. The successful implementation of the treaties in 1999 stands as a testament to the power of diplomatic negotiation and cooperation between nations.

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