Panama Canal Transferred to Panama
The United States handed control of the Panama Canal to Panama
December 31, 1999
A Canal That Divided a Country
The Panama Canal, opened in 1914, was one of the greatest engineering achievements in history. It cut across the Isthmus of Panama, connecting the Atlantic and Pacific Oceans and eliminating the need for ships to travel around the tip of South America. The canal was built by the United States, which had effectively controlled the Canal Zone — a strip of territory running through the heart of Panama — since the country's independence in 1903. For Panamanians, the American presence on their soil was a constant source of national resentment and a symbol of unequal power.
The Torrijos-Carter Treaties
Tensions over the canal led to riots in 1964 in which American and Panamanian forces clashed, leaving dozens dead. Negotiations over the canal's future continued through multiple U.S. administrations. In September 1977, President Jimmy Carter and Panamanian leader Omar Torrijos signed two treaties. The first provided for the gradual transfer of canal operations to Panama. The second guaranteed the canal's permanent neutrality and the United States' right to defend it. The treaties were politically controversial in the United States, with critics calling them a giveaway of American assets.
Panama Takes the Helm
Under the terms of the treaties, control of the canal passed fully to Panama at noon on December 31, 1999. The handover was celebrated in Panama as a moment of national sovereignty restored. The Panama Canal Authority took over operations and has run the canal efficiently ever since. A major expansion project was completed in 2016, adding a new set of locks capable of handling the much larger container ships that now dominate global trade. The canal handles about 5 percent of world trade. Use the date calculator to see how many years Panama has operated the canal independently.