IMPACT OF THE PANAMA CANAL TREATIES ON THE PANAMA CANAL (continued) 

Defense and National Security 

The United States had primary responsibility for the canal's defense during the life of the Panama Canal Treaty. At the end of 1999 the U.S. military presence in Panama ceased.

A status of forces agreement (which was actually the Agreement in Implementation of Article IV of the Panama Canal Treaty, discussed in more detail in a related article, covered the activities, presence, and rights of the U.S. military forces in Panama. The United States continued to have access to and the right to use certain land and water areas and installations necessary for the defense of the canal during the treaty period.

Under the terms of the neutrality treaty, Panama and the United States will provide indefinitely for the permanent neutrality of the canal, including nondiscriminatory access and tolls for merchant and naval vessels of all nations. U.S. and Panamanian warships (Panama has none) are entitled to expeditious passage through the canal at all times. U.S. freedom of action to maintain the canal's neutrality is not limited by the treaty.

Six bi-national bodies were created by the Panama Canal Treaty or its associated documents (Agreements in Implementation of Articles III and IV of the Treaty as coordinating vehicles between the Panama Canal Commission and the U.S. Military Forces and Panama:

The Joint Committee and Combined Board, both military entities, are discussed in a separate section entitled U.S. Military Role in Implementation of the Panama Canal Treaty-Overview.

The Coordinating Committee was structured and functioned much like the Joint Committee. Panama Canal Commission and Government of Panama officials made up this committee which met on an as-required basis to discuss and resolve treaty issues impacting on the Panama Canal Commission, its operations and maintenance, and its employees. Issues which could not be resolved by this committee or the Joint Committee could have been elevation to the diplomatic level through the U.S. Embassy for resolution.

The Panama Canal Commission Supervisory Board (discussed earlier) supervised the Commission.

The Consultative Committee was designed to be made up of an equal number of high level representatives of both countries who reviewed matters of policy concerning the operation of the canal. Members were to advise both governments on such matters as tolls, employment and training, and international policies concerning the canal.

TRANSITION PERIOD 

The Panama Canal Treaty established a 30-month transition period which ended March 31, 1982, for an orderly transition from United States to Panamanian jurisdiction in the former Canal Zone. The end of this transition period was marked by a number of treaty-mandated changes which included: