The Hay–Bunau-Varilla Treaty was signed by the United States and Panama shortly after Panama declared its independence from Colombia. The United States had been interested in building a canal across Panama for many years, and it saw the opportunity to gain control of the Canal Zone as a strategic advantage. The treaty was controversial, and it was opposed by many Panamanians who felt that it gave too much power to the United States. However, the treaty was ratified by both countries, and the United States began construction of the Panama Canal in 1904.
The Panama Canal was completed in 1914, and it has been a vital shipping route ever since. The Canal Zone was administered by the United States until 1977, when it was transferred to Panama under the terms of the Panama Canal Treaty. The Panama Canal Treaty gave Panama full sovereignty over the Canal Zone, but the United States retained the right to use the canal in perpetuity.