The treaty that formally transitioned control of the Panama Canal from the United States to Panama is the Treaty of Torrijos-Carter, signed in 1977. This agreement represented a significant shift in U.S.-Panama relations and acknowledged Panama's sovereignty over the canal zone. The treaty established a timeline for the gradual transfer of control, culminating in full Panamanian management by the end of 1999. This transition reflected broader movements towards decolonization and paved the way for Panama to assert its autonomy and enhance its national identity.