The treaty provided the United States with sovereignty over the Canal Zone. In exchange, the Republic of Panama received a $10 million payment and additional annual payments which began with the opening of the canal. In addition to this purchase from Panama, the United States bought the title to all lands in the Canal Zone, including a payment of $40 million to the French Canal Company for their properties.
The treaty granted sovereignty to the United States over the Canal Zone. In exchange, Panama received financial compensation and land acquisitions. The United States obtained control over the canal area, along with payments and property purchases.