Panamanian efforts to renegotiate the original Hay–Bunau-Varilla Treaty had been ongoing almost since it was first signed in November 1903, a few weeks after Panama obtained its independence from Colombia.

However, activity to renegotiate or abrogate the treaty increased considerably after the Suez Crisis, and events in 1964 precipitated a complete breakdown in relations between the U.S. and Panama.

[4][5] In response to a lack of progress of negotiations with the Nixon administration, the Torrijos government succeeded in holding a March 1973 United Nations Security Council session in Panama City, where it attracted considerable international support for its cause.

The diplomatic debacle also attracted Henry Kissinger's attention and helped produce momentum for the 1974 Tack-Kissinger agreement, which would provide the crucial framework for negotiations moving forward.

"It was this work, beginning in late 1972, that made Panama the visible issue that Carter boldly hoped to solve as a watershed for a new style of foreign policy and an era of improved relations with Latin America.

Several individuals associated with that commission would play major roles in the Carter administration's Latin America policy, including Linowitz himself and NSC Senior Director Robert A.

The treaties drew vehement controversy in the United States, particularly among conservatives led by Ronald Reagan, Strom Thurmond and Jesse Helms, who regarded them as the surrender of a strategic American asset to what they characterized as a hostile government.

[9] In the years preceding (and following) the final transfer of canal assets there were efforts to declare the Carter–Torrijos treaties null and void, e.g. House Joint Resolution 77 (HJR 77) introduced by Helen Chenoweth-Hage.

Dusty Johnson announced his intentions to introduce a bill that would authorize the U.S. President to "initiate and conduct negotiations ... to reacquire the Panama Canal.

"[13] Support for the treaties came from a variety of interests, including the Joint Chiefs of Staff and members of Congress, such as Ernest Hollings, Hubert Humphrey,[14] and most importantly Howard Baker and Robert Byrd.

[16] Other supporters included Admiral Elmo Zumwalt and General Maxwell Taylor;[17] John Wayne, who was friends with Omar Torrijos,[18] AFL-CIO president George Meany, statesmen Averell Harriman, Dean Rusk, George Ball, Henry Cabot Lodge, and John Sherman Cooper, and former first lady Lady Bird Johnson.

[22] As a result of the treaties, by the year 2000 nearly 370,000 acres (580 sq mi; 1,500 km2), including some 7,000 buildings, such as military facilities, warehouses, schools, and private residences, were transferred to Panama.

In 1993, the Panamanian government created a temporary agency (Autoridad de la Región Interoceánica or "Interoceanic Region Authority", commonly referred to as ARI) to administer and maintain the reverted properties.

At least 13 other parcels each were encircled not only by land under the absolute jurisdiction of Panama, but also by an "Area of Civil Coordination" (housing) that was subject to elements of both U.S. and Panamanian public law under the treaty.