Torrijos-Carter Treaties (1977-1978)
President Jimmy Carter negotiated two treaties with Panamanian leader Omar Torrijos to transfer the Panama Canal to Panama by 1999. The Senate ratified both treaties with just one vote to spare (68-32), despite strong public opposition and concerns about national security.
The Canal Zone ceased to exist in 1979; a joint U.S.-Panama commission operated the canal until 1999.
Panama has generated $17 billion from canal operations since the handover. The Neutrality Treaty preserved U.S. rights to defend the canal against threats to its neutrality.
The Neutrality Treaty clause allowing U.S. intervention to protect the canal is the legal basis for the Trump administration's argument that Chinese influence violates the agreement.
