The Treaty of 1977, formally known as the Torrijos-Carter Treaties, was an agreement between the United States and Panama that established the process for transferring control of the Panama Canal from U.S. hands to Panama. This treaty marked a significant turning point in U.S.-Panamanian relations, as it acknowledged Panama's sovereignty over the canal and aimed to end a long-standing period of American control that had been seen as imperialistic by many Panamanians.