History of the Panama Canal
During World War II, the canal proved a vital part of the U.S. military strategy, allowing ships to transfer easily between the Atlantic and Pacific. Politically, the Canal remained a territory of the United States until 1977, when the Torrijos–Carter Treaties began the process of transferring territorial control of the Panama Canal Zone to Panama, a process completed on 31 December 1999.
Mexico–Panama relations
During the 1970s, Mexico became a vocal supporter for dialogue between Panama and the United States for eventual Panamanian control of the Panama Canal. In 1977, Panama and the United States signed the Torrijos–Carter Treaties giving Panama eventual control of the canal in December 1999. During the 1980s, foreign ministers of Colombia, Mexico, Panama and Venezuela created the Contadora Group in order to diplomatically try to resolve the crisis facing many Central American nations at the time.