Panama joined the nonaligned movement. This, along with Torrijos's quiet support of the Sandinistas in Nicaragua, signaled a shift from Panama's previous pro-U.S. position.
After four years of negotiations, the U.S. Senate ratified a new canal treaty hammered out by U.S. president Jimmy Carter and Panamanian president Torrijos. The new treaty called for full repatriation of the canal by the year 2000, but gave the U.S. the right to intervene to ensure operation of the canal.
Nicolas Ardito Barletta, of the National Democratic Union(UNADE), won the presidential election under charges that the election was fixed by Noriega, head of the newly renamed National Defense Forces (NDF).
In an effort to undermine Noriega's power in Panama, the U.S. Central Intelligence Agency released reports that he was involved in drug trafficking. A long-time informant for the CIA, Noriega was, at this time, becoming a liability toU.S. interests. At the same time, Noriega was under pressure in Panama from an official investigation into torture and murder launched by Pres. Barletta.
