What best describes the Panama Canal Treaty?

The Panama Canal Treaty of 1977 was a landmark agreement between the United States and Panama that ended U.S. control of the Panama Canal Zone and transferred control of the canal to Panama by the end of the twentieth century. The treaty also provided for the neutrality of the canal and set forth the terms and conditions for its operation and defense. It replaced the previous Panama Canal Treaty of 1903, which had granted the United States perpetual control over the Panama Canal Zone in exchange for an annual fee to Panama. The 1977 treaty was the result of more than a decade of negotiations between the two countries, and was seen as a major diplomatic victory for Panama and a sign of increasing cooperation between the United States and Latin America.