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Neutrality Treaty

Panama-United States [1977]

Quick Summary

The Neutrality Treaty between Panama and the United States, signed in 1977 and effective in 1979, guarantees the permanent neutrality of the Panama Canal. This treaty ensures nondiscriminatory tolls and access for all nations. Under its terms, only Panama can operate the canal or maintain military installations within its territory. The United States, however, reserved the right to use military force to ensure the canal remains open. This treaty, along with the Panama Canal Treaty, led to the gradual transfer of canal operations and the abolition of the Canal Zone, with Panama assuming full control by December 31, 1999.12

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