The question “Where Is The Panama Canal?” is deceptively simple. While geographically, the answer points to Panama, Central America, the full story encompasses a rich tapestry of history, international relations, and engineering marvel. Beyond pinpointing its location on a map, understanding where the Panama Canal is truly requires delving into its historical context, particularly the landmark Panama Canal Treaty of 1977. This treaty, signed by President Jimmy Carter of the United States and Omar Torrijos of Panama, marked a pivotal shift in control of this vital waterway, ultimately placing it firmly in Panamanian hands.
To truly grasp the significance of the Panama Canal and answer the question of its “whereabouts” in a comprehensive manner, we need to explore not just its geographical coordinates but also the intricate details of the treaty that shaped its present and future. Let’s embark on a journey to uncover the location and the legacy of the Panama Canal, guided by the very document that redefined its existence: the Panama Canal Treaty of 1977.
Geographical Location of the Panama Canal
The Panama Canal is strategically situated in the Republic of Panama, at the narrowest point of the isthmus connecting North and South America. This isthmus, known as the Isthmus of Panama, is the geographical bridge that separates the Atlantic and Pacific Oceans in this region. More specifically, the canal traverses the isthmus in a southeast to northwest direction. On the Atlantic (Caribbean Sea) side, the entrance to the canal is near the cities of Colón and Cristóbal. On the Pacific side, the entrance is close to Panama City.
For those seeking precise coordinates, the approximate location of the Panama Canal can be pinpointed around 9°04′48″N 79°40′48″W. Its location is not just a matter of latitude and longitude; it’s a point of immense global strategic importance. By bisecting the Isthmus of Panama, the canal provides a crucial shortcut for maritime trade, eliminating the lengthy and perilous voyage around the tip of South America – Cape Horn. This geographical advantage has made Panama a vital crossroads for international shipping and commerce.
The image above illustrates the strategic geographical position of the Panama Canal, highlighting its role as a connector between the Atlantic and Pacific Oceans through the Isthmus of Panama.
Historical Context: The Panama Canal Treaty of 1977
The story of the Panama Canal is deeply intertwined with the history of the 20th century and the relationship between Panama and the United States. Initially conceived and constructed by the United States in the early 1900s, the canal and the surrounding “Canal Zone” were under US control, a point of contention for Panama for decades. The original agreement, the Isthmian Canal Convention of 1903, granted the US significant rights in perpetuity, essentially carving out a zone of American sovereignty within Panamanian territory.
By the mid-20th century, this arrangement became increasingly untenable. Panamanian national identity grew stronger, and the desire for full sovereignty over their territory, including the canal, intensified. Negotiations between the two nations began, aiming to address Panamanian grievances and establish a more equitable relationship. These negotiations culminated in the signing of the Panama Canal Treaty in 1977.
The Panama Canal Treaty, alongside the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal, represented a landmark agreement. It stipulated the gradual transfer of control of the Panama Canal to Panama, culminating in full Panamanian control on December 31, 1999. The treaty not only addressed the issue of sovereignty but also established a framework for the canal’s operation, neutrality, and defense in the years leading up to and beyond the transfer.
President Jimmy Carter and Panamanian Chief of Government Omar Torrijos are pictured above signing the Panama Canal Treaty on September 7, 1977, a moment that signified a major shift in the history of the canal and US-Panamanian relations.
Key Provisions of the Panama Canal Treaty
The Panama Canal Treaty of 1977 is a comprehensive document, designed to systematically transfer control and redefine the relationship between the US and Panama concerning the canal. Let’s examine some of its key articles to understand the scope and depth of this historic agreement.
Abrogation of Prior Treaties and Establishment of a New Relationship (Article I)
Article I of the treaty is foundational, explicitly addressing the past and setting the stage for the future. It clearly states the termination of previous treaties, conventions, and agreements related to the Panama Canal that were in force before this treaty.
Article I
Abrogation of Prior Treaties and Establishment of a New Relationship
- Upon its entry into force, this Treaty terminates and supersedes:
(a) The Isthmian Canal Convention between the United States of America and the Republic of Panama, signed at Washington, November 18, 1903;
(b) The Treaty of Friendship and Cooperation signed at Washington, March 2, 1936, and the Treaty of Mutual Understanding and Cooperation and the related Memorandum of Understandings Reached, signed at Panama, January 25, 1955, between the United States of America and the Republic of Panama;
(c) All other treaties, conventions, agreements, and exchanges of notes between the United States of America and the Republic of Panama concerning the Panama Canal, which were in force prior to the entry into force of this Treaty; and
(d) Provisions concerning the Panama Canal, which appear in other treaties, conventions, agreements, and exchanges of notes between the United States of America and the Republic of Panama, which were in force prior to the entry into force of this Treaty.
This article definitively dismantled the legal framework that had governed the Panama Canal for decades, paving the way for a “new relationship” based on Panamanian sovereignty. It acknowledges Panama’s territorial sovereignty while granting the US, for the duration of the treaty, the rights necessary to operate, manage, maintain, improve, protect, and defend the canal. Crucially, it also outlines Panama’s increasing participation in the management, protection, and defense of the canal.
- In accordance with the terms of this Treaty and related agreements, the Republic of Panama, as territorial sovereign, grants to the United States of America, for the duration of this Treaty, the rights necessary to regulate the transit of ships through the Panama Canal, and to manage, operate, maintain, improve, protect and defend the Canal. The Republic of Panama guarantees to the United States of America the peaceful use of the land and water areas which it has been granted the rights to use for such purposes pursuant to this Treaty and related agreements.
- The Republic of Panama shall participate increasingly in the management and protection and defense of the Canal, as provided in this Treaty.
- In view of the special relationship established by this Treaty, the United States of America and the Republic of Panama shall cooperate to assure the uninterrupted and efficient operation of the Panama Canal.
Canal Operation and Management (Article III)
Article III details the specifics of canal operation and management during the treaty’s duration. It reiterates Panama’s grant of rights to the US to manage, operate, and maintain the canal and ensure the orderly transit of vessels.
Article III
Canal Operation and Management
- The Republic of Panama, as territorial sovereign, grants to the United States of America the rights to manage, operate, and maintain the Panama Canal, its complementary works, installations, and equipment and to provide for the orderly transit of vessels through the Panama Canal. The United States of America accepts the grant of such rights and undertakes to exercise them in accordance with this Treaty and related agreements.
This article goes on to list the specific rights granted to the US, including the use of installations and areas, making improvements, enforcing rules for vessel passage, setting and collecting tolls, and regulating employment. It also establishes the Panama Canal Commission, a US government agency responsible for carrying out these responsibilities, with a board including both US and Panamanian nationals. The gradual increase in Panamanian representation in the Commission’s administration is also stipulated, with a Panamanian Administrator taking over by 1990.
- Pursuant to the foregoing grant of rights, the United States of America shall, in accordance with the terms of this Treaty and the provisions of United States law, carry out its responsibilities by means of a United States Government agency called the Panama Canal Commission, which shall be constituted by and in conformity with the laws of the United States of America.
(a) The Panama Canal Commission shall be supervised by a Board composed of nine members, five of whom shall be nationals of the United States of America, and four of whom shall be Panamanian nationals proposed by the Republic of Panama for appointment to such positions by the United States of America in a timely manner.
(c) The United States of America shall employ a national of the United States of America as Administrator of the Panama Canal Commission, and a Panamanian national as Deputy Administrator, through December 31, 1989. Beginning January 1, 1990, a Panamanian national shall be employed as the Administrator and a national of the United States of America shall occupy the position of Deputy Administrator. Such Panamanian nationals shall be proposed to the United States of America by the Republic of Panama for appointment to such positions by the United States of America.
Protection and Defense (Article IV)
The protection and defense of the Panama Canal were, and remain, matters of paramount importance. Article IV addresses this critical aspect, outlining the shared commitment of both nations to safeguard the waterway.
Article IV
Protection and Defense
- The United States of America and the Republic of Panama commit themselves to protect and defend the Panama Canal. Each Party shall act, in accordance with its constitutional processes, to meet the danger resulting from an armed attack or other actions which threaten the security of the Panama Canal or of ships transiting it.
For the duration of the treaty, the US was given primary responsibility for protection and defense, with rights to station, train, and move military forces within Panama. A Combined Board, composed of military representatives from both nations, was established to coordinate defense efforts and plan joint military exercises.
- For the duration of this Treaty, the United States of America shall have primary responsibility to protect and defend the Canal. The rights of the United States of America to station, train, and move military forces within the Republic of Panama are described in the Agreement in Implementation of this Article, signed this date. The use of areas and installations and the legal status of the armed forces of the United States of America in the Republic of Panama shall be governed by the aforesaid Agreement.
- In order to facilitate the participation and cooperation of the armed forces of both Parties in the protection and defense of the Canal, the United States of America and the Republic of Panama shall establish a Combined Board comprised of an equal number of senior military representatives of each Party. These representatives shall be charged by their respective governments with consulting and cooperating on all matters pertaining to the protection and defense of the Canal, and with planning for actions to be taken in concert for that purpose.
Principle of Neutrality (Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal)
Alongside the Panama Canal Treaty, the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal was also signed. This treaty ensured the canal’s permanent neutrality, a crucial principle for international trade and stability.
Article I
The Republic of Panama declares that the Canal, as an international transit waterway, shall be permanently neutral in accordance with the regime established in this Treaty. The same regime of neutrality shall apply to any other international waterway that may be built either partially or wholly in the territory of the Republic of Panama.
The neutrality treaty declared that the canal would remain open to peaceful transit by vessels of all nations in times of both peace and war, without discrimination. This commitment to neutrality was further reinforced by the US Senate modifications, which clarified the rights and responsibilities of both nations in maintaining this neutrality, even allowing for unilateral action if necessary to defend the canal against threats.
United States Senate Modifications (Incorporated Into the June 1978 Instruments of Ratification)
(a) AMENDMENTS
(1) At the end of Article IV, insert the following:
Transition and Transfer (Articles XI and XIII)
Articles XI and XIII detail the transition period and the ultimate transfer of the canal to Panama. Article XI addressed the 30-month transition period following the treaty’s entry into force, during which US laws and jurisdiction would continue to apply concurrently with Panamanian law in certain areas.
Article XI
Provisions for the Transition Period
- The Republic of Panama shall reassume plenary jurisdiction over the former Canal Zone upon entry into force of this Treaty and in accordance with its terms. In order to provide for an orderly transition to the full application of the jurisdictional arrangements established by this Treaty and related agreements, the provisions of this Article shall become applicable upon the date this Treaty enters into force, and shall remain in effect for thirty calendar months.
Article XIII outlines the property transfer and economic participation for Panama. Upon the treaty’s termination, Panama would assume total responsibility for the canal’s management, operation, and maintenance. The US agreed to transfer, without charge, all rights, titles, and interests in real property related to the canal to Panama. Furthermore, Panama would receive a share of canal revenues through various mechanisms, including a payment per Panama Canal net ton and a fixed annual annuity.
Article XIII
Property Transfer and Economic Participation by the Republic of Panama
- Upon termination of this Treaty, the Republic of Panama shall assume total responsibility for the management, operation, and maintenance of the Panama Canal, which shall be turned over in operating condition and free of liens and debts, except as the two Parties may otherwise agree.
- The United States of America transfers, without charge, to the Republic of Panama all right, title and interest the United States of America may have with respect to all real property, including non-removable improvements thereon…
- The Republic of Panama shall receive, in addition, from the Panama Canal Commission a just and equitable return on the national resources which it has dedicated to the efficient management, operation, maintenance, protection and defense of the Panama Canal, in accordance with the following:
(a) An annual amount to be paid out of Canal operating revenues computed at a rate of thirty hundredths of a United States dollar (US$0.30) per Panama Canal net ton, or its equivalency, for each vessel transiting the Canal after the entry into force of this Treaty, for which tolls are charged…
Significance and Legacy of the Panama Canal Treaty
The Panama Canal Treaty of 1977 holds immense significance, not just for Panama and the United States, but for the world. It resolved a long-standing point of contention between the two nations, ushering in an era of improved diplomatic relations and mutual respect. For Panama, the treaty represented the culmination of decades of struggle for sovereignty and national dignity. It signified the reclaiming of their territory and control over a vital national asset.
For the United States, the treaty demonstrated a willingness to adapt to changing geopolitical realities and embrace a more equitable approach to international relations. It solidified the US’s image as a nation that, while powerful, was also capable of acting justly and recognizing the sovereignty of other nations.
The treaty’s impact extends far beyond bilateral relations. By ensuring the canal’s neutrality and continued efficient operation, it has played a crucial role in facilitating international trade and maritime commerce. The Panama Canal remains a vital artery of global shipping, and the framework established by the 1977 treaty has ensured its stability and accessibility to the world.
Today, the Panama Canal is operated by the Panama Canal Authority (ACP), an autonomous agency of the Panamanian government. The successful transfer and operation of the canal under Panamanian control stand as a testament to the enduring legacy of the Panama Canal Treaty. It serves as a model for peaceful resolution of international disputes and a reminder that geographical locations are often intertwined with complex histories and political agreements.
Conclusion
So, where is the Panama Canal? Geographically, it is in Panama, Central America, a crucial link between the Atlantic and Pacific Oceans. Historically and politically, its “where” is also deeply embedded in the Panama Canal Treaty of 1977. This treaty not only defined the terms of its transfer from US to Panamanian control but also established the principles of its operation, neutrality, and enduring global significance. Understanding the Panama Canal requires understanding both its geographical location and the landmark treaty that shaped its modern identity and ensured its continued importance in the 21st century. The treaty stands as a powerful document that answers not just “where is the Panama Canal located?” but also “who controls it and how is it governed?” – questions that are equally vital to understanding this iconic waterway.
