In 1977, U.S. President Jimmy Carter and Panama President Omar Torrijos signed the Torrijos-Carter Treaty, which completely handed over the control of ships and canals to the government of Panama, built by the U.S.
As a result, the U.S. military, which had been stationed in the Panama Canal and used as an economic and military hub, withdrew from the canal, and the Panama government took full control after noon on December 31, 1999.
The Panama Canal has been successfully operated since its expansion and has become a key conduit for global maritime trade, but it has emerged as the center of a diplomatic dispute as Trump has been unhappy with the toll and has spoken of the return.
While the pro-U.S. government of Panama is protesting, saying, "We can't give you a single square meter," there are observations that diplomatic disputes between the U.S. and Panama over the Panama Canal could continue after Trump's second launch.
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