What Rights Did the U.S. Keep After the Panama Canal Transfer?

The U.S. did not “give away” the canal—it transferred sovereignty under the 1977 Torrijos‑Carter Treaties, effective 1999. However, the treaties reserved two critical rights for the U.S.:

1. Right to defend the canal – U.S. military may act to ensure the canal’s neutrality and accessibility.
2. Right of priority passage for U.S. warships – In times of conflict, U.S. naval vessels get expedited transit.

Panama assumes full operational, administrative, and financial control; the U.S. retains only these security‑related guarantees.