In 1977, President Jimmy Carter signed treaties with Gen. Omar Torrijos, **agreeing to gradually return control of the Panama Canal to Panama**.
The **U.S. had controlled the Canal Zone for nearly 75 years**, creating a segregated environment with limited rights for Panamanians.
The treaties stipulated that by **December 31, 1999**, Panama would gain full control of the canal, while the U.S. retained the right to defend it.
Carter's decision was met with **mixed reactions from U.S. citizens**, some viewing it as capitulation to a military regime.
Ultimately, Carter's action is seen as a step towards **reducing inequalities** and reshaping U.S.-Panama relations, initiating a transformation that served the interests of both nations.
Read more about Jimmy Carter's impactful decision on NPR.