The Torrijos-Carter Treaties between Panama and the United States on the status of the Panama Canal are signed. The United States agrees to transfer control of the canal to Panama at the end of the 20th century.
The Torrijos–Carter Treaties (Spanish: Tratados Torrijos-Carter) are two treaties signed by the United States and Panama in Washington, D.C., on September 7, 1977, which superseded the Hay–Bunau-Varilla Treaty of 1903. The treaties guaranteed that Panama would gain control of the Panama Canal after 1999, ending the control of the canal that the U.S. had exercised since 1903. The treaties are named after the two signatories, U.S. President Jimmy Carter and the Commander of Panama's National Guard, General Omar Torrijos.
This first treaty is officially titled The Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal (Spanish: Tratado Concerniente a la Neutralidad Permanente y Funcionamiento del Canal de Panamá) and is commonly known as the "Neutrality Treaty". Under this treaty, the U.S. retained the permanent right to defend the canal from any threat that might interfere with its continued neutral service to ships of all nations. The second treaty is titled The Panama Canal Treaty (Tratado del Canal de Panamá), and provided that as from 12:00 on December 31, 1999, Panama would assume full control of canal operations and become primarily responsible for its defense.