December 31
United States Hands Panama Canal to Panama
Summary
Under the 1977 Torrijos-Carter Treaties, the United States agreed to transfer full control of the Panama Canal and the former Canal Zone to Panama by the end of the twentieth century. After two decades of joint administration and infrastructure modernization, the handover culminated at noon on December 31, 1999. U.S. and Panamanian officials participated in ceremonies, with former President Jimmy Carter representing the United States. Crowds celebrated in Panama City as the Panamanian flag was raised and the waterway came under exclusive Panamanian jurisdiction. The transfer ended nearly a century of American control that had begun with the canal's opening in 1914.
Why It Matters
The 1999 handover fulfilled long-standing Panamanian sovereignty claims and marked a major step in U.S.-Latin American relations. It allowed Panama to manage a vital global trade artery independently, generating significant revenue while preserving U.S. rights to defend the canal's neutrality.
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Sources
- Panama Canal turned over to Panama, HISTORY.com. Accessed 2026-07-08.
- Torrijos–Carter Treaties, Wikipedia. Accessed 2026-07-08.