How the United States Secured Rights to Build the Panama Canal

1. French Attempt (1870s–1890s)

A French company obtained a concession from Colombia (which then controlled Panama) but failed due to engineering and financial problems.

2. Hay–Herrán Treaty (1903)

The U.S. negotiated with Colombia for exclusive canal rights, but Colombia's legislature rejected the treaty.

3. Panamanian Independence & U.S. Support (1903)

With U.S. encouragement and naval presence, Panamanian leaders declared independence from Colombia. The U.S. quickly recognized the new Republic of Panama.

4. Hay–Bunau-Varilla Treaty (1903)

The U.S. and Panama signed this treaty, granting the U.S. perpetual rights to build and control a canal zone across the isthmus.

5. Construction & U.S. Control (1904–1914)

The U.S. built the canal, completing it in 1914. It administered the Canal Zone for decades.

6. Transfer to Panama (1999)

Under the 1977 Panama Canal Treaties, the canal and zone were transferred to Panama on December 31, 1999. The U.S. retained rights to defend the canal's neutrality.